The Influence Analysis Of Bank Card Development Impact Of Money Supply Structure

With the Government's support and the efforts of major banks, after 20 years of development, China's bank card industry has developed to a very large-scale, and the amount has achieved to 1.14 per capita, most of people are holding three to four cards issued by different banks.Bank cards have become to be the main tool of savings, payment and settlement. The volume and value of Bank card transaction are rising day by day.To the end of 2008, China's bank card issuing volume has accumulated more than 1.8 billion, the total volume of bank card transactions in 2008 reached 16.67 billion with the increase of 22.47% compared to last year, and the value of transactions achieved to 127.16 trillion Yuan, which Increase 14.08% compared to last year.China has become one of the largest countries of debit card circulation.However, as refer to the level of per capita and the average value of transaction, China is far behind the developed countries and regions in the world. In the number of POS Per million people, China is far less too.But China's bank card industry has developed rapidly.the growth rates of China's bank card issuing maintained at more than 50% before 2000, and the rate of 96-year even achieved to 195%.Based in the massive amount, the volume of card issuing continued to rise, maintaining an annual growth rate of 20% around. And our network ATM, networking merchant and networking POS was increasing in an average rate of 22.7% and 36.2% annually after the year of 2000.Therefore, the above data illustrates that China's banking card is still in the early stages of development. It's also shows that there is a huge space for development of China's banking card industry, which are expected to become a huge power of world's banking card industry.In addition, different from other countries, bank card is a major individual non-cash payment instruments, China's banking card transaction volume and value share 88.1% and 18.8% on all non-cash payment transactions, far higher than the level of other countries, therefore, for our country, bank card is the main alternative to cash payment.From international experience of the development of bank card, the bank card payment method development will form a significant alternative to other payment methods.in The mid-90s of the last century, with the development of Non-cash payment especially of the bank card, the proportion of card payment sharply decreased,which made MO/GDP show a decline,and MO in the declining proportion of M1.Monetary multiplier rapidly changed in the short term, and the money supply structure dramatic changed.So, with the development of bank card payment, China will also be going through this process.That's the reason to choose this topic to research. The main contents of this article includes four parts: in the First part, first I overviewed the theories of endogenous money supply, on this basis,use a theoretical modeling to describe the change of people's demand with the development of payment, and then through the mathematical derivation, describe the way of the change of money demand Acting on the money multiplier. These are theoretical basis for this article.The second part beginning with the review of the rapid development stage of World Bank card industry, then with a large number of related data, there is a analysis of the impact of foreign bank cards development to monetary multiplier and money supply structure. Finally, for Belgium's example, re-analysis the impact of the development of bank cards to the money supply structure.The third part is the analysis of china's situation. Begun by reviewing the development of China's bank card history and the status quo of development, Select Variable of the amount of ATM, of the proportion of Bank card payments account for total retail sales of social consumer goods, of the rate of M0/M1 and M1/M2 to do the research.Conclusion:By the above analysis, there is a conclusion of that, first the rapid development of China's bank cards has resulted in the role of alternative cash, China's money supply structure has changed by the impact of the development of bank cards, MO in the M1 proportion was declining. The ATM and the proportion of Bank card payments account for total retail sales of social consumer goods are important variables to impact the substitution of cash. The innovations of this article is that Research perspective and Research ideas. From analyzing the demand for money, the path of the development of bank card impact to the structure of money supply was analysis in a Progressive way. and the data used to analysis was latest.Shortcomings of this article is that, due to data collection difficulties and the lack of depth of knowledge,the impact of the using of bank cards to bank's excess reserves could not be further analyses, thus limiting the depth of analysis. This paper studied only at the present stage of development of China's bank card for cash substitution, as well as the impact of money supply structure, there is no refer to the stages and processes of substitution, Which could be the follow-up research.