How Bank Competition Drives the Development of New Productive Forces

This article discusses the mechanism of banking competition in the development of new quality productivity under the background of China's economic transformation. As a key role in the financial market, banks play an important role in scientific and technological research and development, resource allocation and monetary policy transmission. This paper sorts out relevant domestic and foreign studies through literature review and uses variables proposed by existing studies to perform regression. The regression results show that bank competition is positively correlated with the new quality productivity of enterprises, and financial technology has significant adjustments to this. The intermediary effect shows that intensified bank competition can alleviate corporate financing constraints, promote innovation and labor structure upgrading, while financial technology accelerates this process by reducing information asymmetry and improving service efficiency and inclusiveness. Heterogeneity analysis shows that the competitive effect of banks in economically developed regions is more significant, with large enterprises benefiting less, while small and medium-sized enterprises have enhanced their competitiveness due to ease of financing constraints and increased innovation. Therefore, it is recommended to deepen banking reform, optimize the competitive environment, guide credit flow to high-quality innovative enterprises, and at the same time increase the application and innovation of financial technology to achieve innovation-driven sustainable development.