Analysis Of The Impact Of China’s Monetary Policies On Commercial Banks’ Business Performance

Monetary policy is an important means of macro-control by the central bank,using monetary policy flexibly and reasonably to internal and external equilibrium ofMacroeconomic has important significance. In recent years, because of theinternational financial crisis and the effect of domestic inflation, the central bank hasrepeatedly used monetary policy to undertake macro-control, which plays animportant role in the adjustment of economic structure, keeping fast and steadyeconomic development. As the important monetary policy transmission channel,commercial banks, in the monetary policy implementation, are inevitably affected.But as profitable enterprises, commercial banks should pay more attention to theirown interests in ensuring the effect of monetary policy, to realize their own businessfor the principle of "biggest" and "smallest". The changes of policy have more or lessinfluence on the commercial bank management. Therefore, making research on howcommercial banks avoid risks and guarantee performance has important significance.Based on such a situation, this paper mainly studies the effect of monetarypolicy on the business performance of commercial bank at present. And according tothese effects, put forward to optimization scheme of improving banks businessperformance.First of all, describe the related theory of monetary policy, analyze monetarypolicy transmission mechanism and comb commercial banks performance evaluationtheory. Then, analyze the effects of monetary policy changes on commercial banksbusiness performance, which can provide a basis for the later study. Secondly, theinfluence factors of commercial banks business performance are analyzed, based onimportance、operability and clarity, and determine measure index system of businessperformance, the internal and external influence factors,and give analysis of theeffects. Then, make empirical analysis on the effect of monetary policy change on thecommercial bank business performance. Using panel data model to analyze the comprehensive effect of monetary policy changes on commercial bank’s businessperformance, and using the grey relational model to research structure effect ofmonetary policy changes on commercial bank’s business performance.Finally, basedon the current situation of monetary policy, put forward to optimization scheme ofimproving banks business performance. Research shows that: in the comprehensiveeffect, at present, China’s two main monetary policies-legal deposit reserve rate andinterest rate are inversely related to commercial bank’s profitability, and positivelyrelated to profit structure, and the result is consistent with theory. In the effect of thestructure, in all the influence of the two main monetary policies, the biggest influenceon net income, the second on exchange gain and other business gains, the smallest oninvestment income and fees and commissions net proceeds，which shows thattraditional business is vulnerable to the influence of the policy change， theintermediate business which mainly concludes net fee and commission income isstrongest to the risk. In the end, design optimization scheme of improving banksbusiness performance.This paper makes creative discussion mainly in the following aspects:1. The construction of commercial bank business performance index system.According to domestic and international business performance analysis theory, andunifying our commercial bank business performance, establish the index systemincluding profitability and profit structure.2. Study the structure effect of legal deposit reserve rate and interest rate,measure the correlation between monetary policy and the source of profit ofcommercial banks, which is helpful for the design of the optimization.