Chinese Banking Industry's Stability And Monetary Policy Transmission Mechanism

With the changes of the world's economic situation, financial system plays an important role in the macroeconomic development. So it is necessary to do research on the financial system stability combining macro-control efficiency. In the field of monetary policy, doing research on the relationship of the steady banking industry and the transmission of monetary policy has a great significance.The transmission of monetary policy has a direct effect on the measures of monetary policy. Therefore, monetary policy has always been one of the key questions of the monetary policy research. The problems appearing in the process of the transmission of the monetary policy include the problem of the monetary policy frame itself. Furthermore, the financial system is not perfect in the period of our country's economic system switch time; the banking industry market structure is not reasonable.The main idea of this thesis: The monetary policy transmission mechanism may divide into the money channel and the credit channel from the channel angle. At present, the credit channel is the main channel. The commercial bank is the credit channel transmission medium, Chinese banking industry's steadiness can directly affect the monetary policy transmission effect. In view of strengthening the Chinese banking industry's steadiness and improving the efficiency of the monetary policy transmission the article has produced the corresponding countermeasures.The thesis consists of three parts:Part One: the outline of monetary policy transmission mechanism. It mainly introduces the monetary policy transmission mechanism theory and the monetary policy transmission channel, and studies function that the bank displays in monetary policy transmission mechanism.Part Two: research on Chinese banking industry's steadiness. First it introduces the definition of steady bank industry; then the weight method and the weight target on the banking industry steadiness; lastly, in view of the present situation of our country banking industry's management and after carrying on the contrast with the international advanced bank, the Chinese banking industry's steady character condition judgment is made. Namely, the capital of commercial bank of our country is general low; the non-performing loan is a bit high; the profit ability is insufficient; the service structure is unreasonable; the financial condition has been improved, but the endurance of its paying off ability waits for the examination. So, China's banking industry is still at the unsteady condition.Part Three: chinese banking industry's steadiness and monetary policy transmission mechanism. Firstly, it introduces the effect the unsteady banking industry has on the monetary policy transmission through direct and indirect aspects. As to the direct effect, the capital is insufficient; the rate of the non-performing loan is a bit high; the profit ability is not good; the service structure is unreasonable. All of these aspects will affect the function of the monetary policy. As to the indirect effect, the unsteady commercial bank will disturb the central bank, other financial institution and financial market and social public, and then have an indirect effect on the monetary policy transmission effect. Secondly, according to the present situation of China's banking industry, small and medium - sized finance organ should be developed and the inner structure system perfected in order to strengthen the steadiness of the China's banking industry. What's more, financial supervising and managing should be strengthened; Managing structure should be established; Management efficiency should be improved. Only the steadiness be strengthened can the monetary policy transmission be improved.The thesis is based on the practical conditions of economic operation and financial system. It does research on the effects that the monetary policy transmission mechanism and the present situation of banking industry steadiness and the main medium (the transmission situation of the commercial bank conducts the monetary policy) of the monetary policy transmission have. May these research and countermeasures help make clear the relationship between China's commercial bank and monetary policy transmission, therefore, the transmission condition and the transmission effectiveness will be improved.