Bank Characteristics, Firm Characteristics and Bank Loans

Using logit regression model, this paper studies the differences of customer orientation and loan characteristics between state-owned banks and non-state-owned banks. By controlling the characteristics of banks and firms at the same time, we find that, (1) The differences of banks' customer orientation and preferences of crdit loans between state-owned banks and non-state-owned banks are non-significant after 2007. However, state-owned banks are more likely to lend long-term loans due for longer than 1 year than non-state-owned banks. (2) State-owned enterprises still have significant advantages to obtain bank loans, in particular, are more likely to obtain long-term loans. This phenomenons may be determined by firm characteristics and banks' economic behavior, rather than bank discrimination. (3) Companies controlled by central government are less likely to obtain credit loans, which further indicates that bank lending is a two-way choice process between firm and bank.