A Study on Loan Interest Rate Liberalization,Banking Competition and Resource Misallocation in Cities
Abstraet:How to effectively alleviate resource misallocation is an important issue that urgently needs to be addressed when China's economy enters a stage of high-quality development.This paper takes advantage of the event of relaxing the lower limit of loan interest rate in 2013,and uses the level of competition among regional banks as the treating intensity to construct a continuous difference-in-difference model to test the impact of loan interest rate liberalization on urban resource misallocation.Research finds that loan interest rate liberalization significantly alleviates the mismatch of urban resources,and this policy effect is more pronounced in central cities,low-level cities,and cities with higher dependence on foreign investment.Mechanism analy-sis shows that relaxing the lower limit of loan interest rate helps to increase credit availability,alleviate ownership discrimination in credit structure,and promote the rationalization of capital allocation;at the same time,it can intensify market competition,al-leviate price distortions,and ultimately improve the mismatch of urban resources.In addition,a tight macroeconomic prudential policy combined with interest rate liberalization reform can form a policy synergy,further reducing the degree of urban resource misallocation.
万方数据
维普
