Abstract

By collecting the economic data of four Chinese commercial banks from 1992 to 2006, we analyze the dynamic credit investment relationship among large, medium and small commercial banks, and quantitative describe how large and medium commercial banks play the role in the fluctuation of investment of small commercial banks with co-integration and VAR model. The results show that it is a long-term equilibrium relationship between large-medium commercial banks and small commercial banks in their credit investment, and the investment orientation of large-medium commercial banks is the Granger cause for small ones', and the credit investment of large-medium commercial banks have a positive effect on fluctuating the small commercial bank, and the transmission intensity of medium commercial bank to small commercial bank, in contrast, is much larger.

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