Credit Environment, Directional RRR Cut Policy and the Small and Micro Enterprises Credit Financing—Empirical Research Based on Synthetic Control Method
- QIAN Shuitu, WU Weihua
- Zhejiang Gongshang University, 310018.
As a financial infrastructure, improving the credit environment helps to alleviate the information asymmetry and is being vigorously promoted by the state. How to promote the construction of the credit environment has become on top of the agenda for local governments. Taizhou City in Zhejiang Province has made attempts to build a credit information sharing platform, a practice promoted and replicated in more than 20 regions. However, there is no empirical evidence about whether this measure is effective in alleviating the credit financing problems of small and micro enterprises. Based on the quarterly data of prefecture-level cities in 2012—2015, this paper uses the synthetic control method to study the impact of credit environment construction, represented by the credit information platform building, on lending to small and micro enterprises. It shows that the credit information platform effectively promoted banks to lend to small and micro enterprises, but its effect was not always significant as it was also affected by the macroeconomic policy at that time. Further research on microdata of rural commercial banks shows that the better the local credit environment, the more favorable the central bank's targeted RRR cut decision is to small and micro enterprises, and the more risk-taking banks benefiting from the targeted RRR policy, so that they are more “daring and willing to lend” to small and micro enterprises. The findings of this paper are not only an academic response to the decision of “enhancing the construction of business environment”, but also provide a useful reference for the good transmission of “targeted drip irrigation” monetary policy.
- Credit Environment, Directional Required Reserve Ratio (RRR) Cut, Synthetic Control Method, Small and Micro Enterprise