Empirical Analysis About The Impact Of Deposit Reserve Ratio Adjustment On The Listed Bank Shares

In recent years, our country have been adjusting the legal deposit reserve for several times, which is one of the three monetary policy, from1984to14th June2011, the government have adjusted42times,its adjustment range from0.5%to1%..Of course, its adjustment impacts on the real economy and virtual economy. In the accordance with the traditional views, the four goal of the monetary policy do not aim at the stocks, but in fact, the legal deposit reserve adjustments impact on the stocks importantly. At present there are lots of researches about the deposit reserve rate adjustment impact on share price, which of China’s situation is little. This paper summarizes the domestic and foreign research foundation, select24times of the deposit reserve rate adjustment as the samples, from October25,2007to June14,2011,to choose12listed bank’s share price for the study, using GARCH model and event study method, and use Eviews software for empirical analysis, at last, this paper will show the results and give the rational reasons about the result:This paper studies suggest that legal deposit reserve rate adjustments lead to changes in the money supply,so, the listed bank’s shares are effected,ie when legal deposit reserve is raised, share price of listed bank is a degree of falling, vice versa;but both are not significant.