A Study On The Effect Of Monetary Policy On Commercial Bank Liqudity Creation

Bank liquidity problems have always been hot issues all the time. Especially in2013, with the outbreak of serious "shortage of money" situation within the Chinese banks,bank liquidity problems attracted the attention of scholars once again.Many scholars think that the occurrence of "shortage of money" situation is closely related to bank liquidity creation. After the "shortage of money" happened, the central bank had paid more attention to the influence of monetary policy on bank liquidity creation. Through which way does the monetary policy influence on bank liquidity creation? How much liquidity should the banks create to be consistent with the market expectations? These problems have not been solved, and they are worthy of our in-depth study. The liquidity is created by the financial system and affects the stable operation of the real economy. By studying of the commercial bank liquidity creation, we know how much liquidity the banks creat and what’s its influence factors,which makes a positive role to the healthy development of the macroeconomy. This paper amends the measure method of bank liquidity creation which is established by Berger and Bouwman(2009), and makes it more adapt to the real situation of our country. This paper scientifically measures the bank liquidity creation of China from2005to2012by using this method. The results show that:(1) Our country’s bank liquidity creation is increasing during these years, from10.823697trillion yuan in2005increased to41.997124trillion yuan in2012, while the liquidity creation growth rate is changing every year.(2) The liquidity creation growth rates of different types of banks are different, the growth rate will be affected by the monetary policy and banks’internal factors. Among all types of banks, the liquidity creation growth rate of stock-holding banks is higher than the rates of state-owned banks and city commercial banks.On the basis of measuring the bank liquidity creation effectively, this paper empirically analyzes how monetary policy affects the bank liquidity creation by using panel datum from2005to2012of21Chinese commercial banks. Our results show that:(1) The effects of monetary policy for different types of bank liquidity creation are different. The monetary policy has more effects on the liquidity creation of state owned commercial banks, while has less effects on the liquidity creation of stock-holding banks and city commercial banks;(2) Different monetary policy proxy variables’ influences on banks liquidity creation are different. Legal deposit reserve rate and the one-year lending rate have greater effect on bank liquidity while the broad money growth rate has no effect on bank liquidity creation.(3) Bank assets scale, equity, bank risks and bank performance all influence the bank liquidity creation strongly.