Empirical Analysis Of Commercial Bank Assets And Liabilities Affected By The Behavior Of Monetary Policy Effects

Effect of monetary policy has drawn most attention for many years. In china's financial system which was dominated by indirect financing, low market-oriented interest rates and underdevelopment money market lead to the situation that credit is still a major channel for monetary policy transmission channels. And China's financial system is based on commercial bank-dominated financial system, it can be said that the transmission effect primarily depends on whether commercial banks reflect the intention of central bank's monetary policy timely and sensitively.By analyzing the function and position of commercial banks in transmission process of monetary policy, we discussed how commercial banks ensured its effective transmission of monetary policy's intent by changing the balance acts. Then made comprehensive analysis of commercial banks' assets act and effect of monetary policy since 1993. Conclusions are as follow: from 1993 to 1997, acts of commercial banks efficiently cooperated with monetary policy transmission; from 1997 to 2002, acts of commercial banks went far away from monetary policy intention; from 2003 to 2008, acts of commercial banks drew close to monetary policy intention. In empirical section, by applying unit-root test, co-integration test, as well as Granger causality test and other empirical test, the author confirmed that commercial bank's loans was the Granger's reason for changes in the GDP and CPI, deposit reserve was the Granger's reason for changes in the CPI but not GDP, and On the other hand, GDP could affect deposit reserve. Monetary authorities can implement expanded or tight monetary policy by affecting commercial bank's loans. Commercial banks' deposits was the Granger's reason for changes in the GDP and CPI, but the effect on GDP is negative, that is because low market-oriented interest rates and Commercial banks' preferences of absorbing deposits led to a circumstance that variations in monetary policy have little influence on bank deposits, and reduced the interest rates transmission effect of monetary policy. Finally, some recommendations of enhancing the effect of monetary policy by improving commercial banks' acts were made.This article aimed to study the interaction between transmission effect of monetary policy and commercial banks' acts of assets and liabilities, It can be helpful to solve the problem of poor transmission effect of monetary policy, and can offer some reference for deepening reform of commercial banks and improving transmission effect of monetary policy.