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.