Banking Sector Competition and Cross-Regional Credit Flows:Evidence from Chinese A-Share Listed Companies
In the context of the uneven distribution of credit across regions in China,cross-regional credit flows have gained increasing significance.This study adopts a perspective centered on cross-regional lending between firms and banks,utilizing disclosed loan data from Chinese A-share listed companies and bank branch information.Our inves-tigation delves into the influence of banking sector competition on these cross-regional credit flows.Our findings reveal that regional bank competitions exert a considerable impact on the lending activities between firms and banks,influenc-ing the spatial dynamics of credit flows.Specifically,bank credits exhibit a tendency to migrate from more competitive banking regions to less competitive ones.This phenomenon is particularly pronounced for small and private firms,as well as firms facing financing constraints and lacking robust credit ratings.Such entities are more likely to secure loans from highly competitive regions,where banks may offer more favorable terms,including relaxed pledge requirements,larger loan amounts,shorter repayment terms,and narrower interest rate spreads.Additionally,our research uncovers a procyclical nature in these cross-regional lending activities.This suggests that credit flows from more competitive bank-ing regions to more concentrated ones strengthen during upswings in the business cycle.Overall,our study contributes valuable insights into the intricate relationship between bank competition and firm-bank lending activities.
Bank CompetitionCross-regional Credit FlowsCross-regional Lending
NETL
NSTL
万方数据
