Research On The Transmission Effect Of Banking Credit Channel Of China's Monetary Policy

Monetary policy is the general switch that regulates the liquidity of the whole financial system.The effect of monetary policy is of great significance to the development of the real economy,the theory of monetary policy and the optimization of monetary policy practice.Therefore,although the research on the transmission effect of monetary policy is not a new proposition,it has always been an important topic in academic research because of its theoretical and practical value.Depending on the specific mechanism of action,the monetary policy transmission channels can be divided into the monetary channel and credit channel,as the financial structure is that the leading role of China's banking sector in the financial industry has not significantly change,that the transmission effect of banking credit channel of monetary policy should be the focus of academic research in China.Most existing domestic researches focus on the perspective of the heterogeneity of micro-enterprise and assets,liquidity,capital adequacy condition of bank,to examine the transmission effect banking credit channel of monetary policy,while ignoring the important role that banking competition has been playing in banking credit channels.Moreover,it has been widely ignored that monetary policy changes are the fundamental front-end variable in the study of banking credit supply.Because of the high correlation between the two aspects research above,and there are further space to expansion for both aspects,this paper chose to include the banking competitive factors in the exploration on monetary policy transmission effect of banking credit channel.The reason why banking competition factors will affect the banking credit channel of monetary policy,is that the credit access of enterprise and scale of banking credit supply are important methods through which the banking credit channel of monetary policy affects the real economy,and the view that banking competition will affect both the former two factors have been accepted by academic research.Therefore,it is feasible and necessary to integrate the competitive factors of banks into the transmission effect of the banking credit channel of monetary policy.Based on the above analysis,we put forward the core view of this paper: that the factor of banking competition will influence the transmission effect of the banking credit channel of the monetary policy.Considering the need to distinguish between the different levels of competition,we established theoretical analysis frameworks for the structure of banking competition(the medium level of banking competition)and banking micro market power(the micro level of banking competiton)respectively,to study the effect of banking competition on the transmission of banking credit channeland get the following conclusions:first,in terms of the impact of banking competition structure,changes in monetary policy and banking competition level,will affect the availability of enterprise credit,but as there exsiting two kinds of hypothesis about the banking competition's influence on the enterprise credit availability,thus to determine the effect of banking competition structure on the effect of banking credit transmission,will need to be combined with the specific data for empirical analysis.Second,in view of the influence of banks' micro-market power,the change of policy interest rate has a reverse effect on the change of bank microcredit scale,that is,the influence of bank lending channels exists;The increase of bank market power has weakened the influence of monetary policy changes on the microcredit scale of banks,or the improvement of bank competition will strengthen the transmission effect of banking credit of monetary policy.The empirical researches of this paper based on the theory analysis framework in the forth chapter,and explored the influence of banking competition on the banking credit channel of monetary policy from the perspective of regional banking competition structure and microcosmic competition-the perspective of market power respectively,and get the following conclusions:first,the effect of banking credit channel of monetary policy is significant,competitive regional banking structure not only improves the credit access of real sector,but also strengthened the regional effect of monetary policy through the banking credit channels.second,the influence of banking credit channel of monetary policy significantly exist,bank micro market power can weaken the influence of policy change on bank loan growth through banking credit channel,in addition,the weaken effect of bank market power on banking credit channel is stronger under the austerity policy.To sum up,this paper obtains inspiration from the literature review,and puts forward the core viewpoints of this paper based on the shortcomings of existing researches.Combining theory analysis,the paper provides theoretical derivation for the mechanism of banking competiton affect the banking credit channel of monetary policy.Finally,verified the core viewpoints and theoretical analysis conclusions with actual data,and put forward relevant policy suggestions.For the study of “banking competition's influence on the transmission effect of banking credit channel of monetary policy”,this paper provides a feasible framework of theoretical analysis and empirical research,and at the same time provides policy basis for the optimization of banking industry competition structure,for the improvement of bank micro market power and for the dredging of monetary policy transmission channel.