The Study Of Banking Credit Channel In China

The transmission mechanism of monetary policy is to analyze how the monetary policy and its instruments affect the real economy through various financial variables. Theoretically,this is not only a subject in the area of banking and finance but also a main content of monetary economics.China is now in the process of establishing the socialist market economy system,the macro environment and micro environment of the monetary policy are changing.There is great uncertainty in the financialenvironment and financial structure,thus more and more concern has been focus on the transmission mechanism of monetary policy. In practice,transmission mechanism of monetary policy.Nowadays,monetary policy is becoming the most important method of adjusting economics in many countries.The question whether the monetary policy will be effective depends on whether the monetary policy transmission is expedite.The traditional interest transmission is the main transmission in west developed countries,but if it is effective,there must be some assumptions,such as the market is completely competitive and the information is sufficient.To the contrary,the credit channel of transmission is founded on non-completely competitive market and non-sufficient information. China economy and finance are not developed, so in our country,the credit channel of transmission still is the main channel,and it is meaningful to studying the credit channel of transmission in China.The logic structure of the whole paper is as follows:In chapter 2, we look back on theories about monetary policy transmission.The monetary policy transmission can be classified into two categories, Credit Channel of Transmission and Money Channel of Transmission. In broad sense, Credit Channel of Transmission includes two channels, that is, asset-liability channel and bank credit channel; in narrow sense, Credit Channel of Transmission means the latter, bank credit channel, what we focus on.In chapter 3, we describe feasibilities and characters of Credit Channel of Transmission in china. Firstly, we put forward the three postulates of Credit Channel of Transmission and argument its feasibilities in china. Secondly, based on the practice of monetary policy transmission from planned economy to market economy in china, we discuss the transformation about regulation instrument of monetary policy. Thirdly, analyzed from the theories and the practice, we conclude that Credit Channel of Transmission plays a significant part in the process of monetary policy implement.Chapter 4 is the emphases of the whole paper. In this chapter, we research the Credit Channel of Transmission in different period. Firstly, we analyze what the influences on the Credit Channel of Transmission from the aspects of central bank. Secondly, we analyze how the commercial banks and enterprises influence the Credit Channel of Transmission. Thirdly, we indicate that the influences of local government on the Credit Channel of Transmission. Fourth, we summarize briefly the reason why the Credit Channel of Transmission has been blocked.In chapter 5, we put forward some advice. For details, we should improve the level of the monetary policy implement, seek for the approach on the reformation of commercial bank, perfect their supervision structure, deal with the bad assets on their balance sheet as soon as possible, put the reformation in the other correlative field into practice, and carry out discriminative credit policies and so on.we use a brief model to make demonstration. And we also choose data according to their economic meaning to make model more persuasive. Thirdly, from the analysis on theory and practice, our conclusions are persuasive and our suggestions are exercisable.