Research on the Impact of the Implementation of New Asset Management Regulations on Commercial Credit Supply from the Perspective of Financial Supervision

Abstract

This article explores the influence of the new regulations on the supply of commercial credit to enterprises and its mechanism based on the information of China's non-financial public corporations from 2015-2022, using the generalized difference model (GDD). The findings show that the new regulations on credit regulation have a remarkable effect on the supply of commercial credit by suppressing the financialization of firms, and the effectiveness is more prominent among firms with a greater degree of initial period of financialization. Mechanism tests indicate that reducing business risks and easing financing constraints are two important transmission paths of the new regulations on commercial credit supply. Further analysis shows that the policy effect is mainly reflected in the short-term credit and accounts receivable and notes receivable tools within one year, and significantly improves the performance of the main business of enterprises. The results verify the theoretical logic of financial regulatory policies to serve the real economy by optimizing resource allocation and reducing systemic risks, and provide new empirical evidence for understanding the interaction between financial supervision and micro-enterprise behavior. This paper has important implications for the regulatory authorities to optimize the policy framework and enterprises to adjust the capital allocation strategy, and the future research can be further extended to the long-term supply chain impact of regulatory synergies and commercial credit.