Abstract: The trend of savings deposit financialization of commercial banks in China has an important impact on bank′s deposit and loan business. This paper uses the panel data of listed commercial banks in China to study the role of savings deposit financialization in credit cost and financial misallocation. The results show that savings deposit financialization has a significant substitution effect on the traditional deposit and loan business of commercial banks, and also drives up the cost of credit;there is a threshold conversion effect on the financial misallocation of savings deposits, and there is a double threshold value for the financial misallocation of savings deposits as a threshold variable. When the financial misallocation level of savings deposits is low, the financial misallocation of savings deposits will not be significantly exacerbated. However, with the improvement of the level of deposit financing, the variable of deposit financing has a significant positive effect on the financial misallocation, which gradually increases. Through the financing cost approach, the variable of savings deposit financing generates crowding out effect, thus causing the increase of financial misallocation.

Key words: savings deposit financialization, financing costs;financial misallocation