The Effect Of Sterilized Monetary Policy On The Difference Of Regional Credit Supply In China

Since China’s reform of foreign exchange system, there is a significant difference in foreign trade development, FDI flows, financial ecological environment as the different levels of open regionalism and different local policy in China,which led to China’s regional credit supply differences.The banking system had greater credit support to coastal areas than inland areas, resulting the imbalance of credit supply in coastal and inland areas. Many scholars discussed the reason from the development of regional economy, regional capital flow and currency policy conduction and many other aspects, but few of them explained it from the perspective of the sterilized monetary policy. Therefore, we analysis the influence of sterilized monetary policy on the difference of regional credit supply in China, attempte to provide a new explanation and empirical evidence of the difference of regional credit.In this paper, we analysis the influence of sterilized monetary policy on the difference of regional credit supply in China by the panel model with the data from2005to2011. The results we get by the model show as follows:sterilized tightens the scale of domestic credit, sterilized monetary policy differently affects the credit supply of the coastal and inland areas.That is exactly what we expected.