SOEs and Soft Incentive Constraints in State Bank Lending

• 成果类型: Article
• 署名作者: Cao, Yiming; Fisman, Raymond; Lin, Hui; Wang, Yongxiang
• 署名单位: Boston University; National Bureau of Economic Research; Nanjing University; The Chinese University of Hong Kong, Shenzhen; Shanghai Jiao Tong University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20200873
• 发表日期: 2023
• 页码: 174-195
• 关键词: ownership; credit; CHINA

摘要

We study how Chinese state bank managers'lending incentives impact lending to state-owned enterprises (SOEs). We show lending quantity increases and quality decreases at month's end, indicating monthly lending targets that decrease lending standards. Increased quantity comes from both SOEs and private lending, whereas decreased qual-ity is from only SOEs, which continue to receive loans even after prior defaults (particularly at month's end). We suggest that SOE lending may thus be beneficial for state bank managers, who lend to delinquent state enterprises to meet targets, which in turn may exacerbate SOEs' soft budget constraints. (JEL G21, G28, L32, O16, P34).