The Research On Credit Transmission Mechanism Of Monetary Policy In Our Country

A country's monetary authorities conduct monetary policy based on macroeconomic situation. The central bank use the monetary policy instruments in order to have impact on intermediate target of monetary policy, then the policy adjust the behavior of consumption and investment to achieve the ultimate target of monetary policy. This process is known as the transmission mechanism of monetary policy. Smooth transmission channels of monetary policy is closely related to the effectiveness of the implementation of monetary policy and it is the safeguard of the central bank to regulate the social economy. Therefore, the research on the transmission mechanism of monetary policy has important practical significance.Western scholars basically have two views on the transmission channel, one is the channel of assets structure adjustment, including interest rate channel, exchange rate channel, asset price channel and the wealth effect channel. The other is the credit channel, including the narrow channels of the bank lending channel of credit and the general credit channel of corporate balance sheet channel. In China it does not have the condition of fully competitive market, and capital markets are not developed, market interest rates have not yet achieved, so the credit channel is the main transmission channel of monetary policy in our country.The credit channel has there ways to transmit the monetary policy, including the credit rationing channel, bank credit channel and corporate balance sheet channel, and how each of these three channels play a role in the economy are described.Through theoretical analysis, the intensity of the monetary policy carried by the central bank is not enough; the distribution of commercial banks is unreasonable, and it is difficult to take into account the existence of commercial banks loans and risk management. Credit rationing is also a factor. Bank loans were concentrated in the large state-owned enterprises, listed companies and the advantages of trade, and finance for SMEs needs are not met. Therefore, the credit channel of monetary policy is not enough smooth.The paper divides the monetary policy transmission into three periods, which are the central bank leading period, the commercial bank leading period, and the enterprises leading period, and conduct empirical research both on the bank lending channel and the corporate balance sheet channel. By analyzing the paper comes to the following conclusions:Firstly, through the bank lending channel, the central bank is not able to adjust the deposit rate of commercial banks to influence funding effectively. Supply of commercial bank credit is not only subject to the amount of loanable funds, which is also subject to a variety of business objectives. Therefore, in the central bank leading period and the commercial bank leading period, the transmission channel is limited. In the enterprises leading period, the transmission mechanism of monetary policy is effective.Secondly, through the corporate balance sheet channel, the transfer in the central bank leading period is not smooth. The central bank through conducting monetary policy to affect the external financing premium is not obvious. In the commercial bank leading period, the external financing premium has little impact on the loan amount. Therefore, in the central bank leading period and the commercial bank leading period, the corporate balance sheet channel is severely disrupted.Finally, by analyzing the results, the paper finds out the reason why the monetary policy transmission mechanism is not smooth, and put forward some policy suggestion.