The Effect On Monetary Policy Caused By The Change Of Our Social Financing Structure

With the establishment and perfection of China’s socialist market economic system, financial system influences on economic operation significantly and status of monetary policy is increasingly prominent. At the same time, financing structure of the whole society is changing a lot. Many financial institutions have been established, and diversified financing ways are developing rapidly. The proportion of the traditional bank lending in the social financing decreases rapidly, while the other ways of financing is rising sharply. In this context, the space and environment for the monetary policy being carry out have changed greatly. For China’s central bank, only paying attention to the new RMB loans cannot accurately know the amount of funds infusion into the real economy and it is difficult to grasp the direction of macro-control, easily leading to deviation. Therefore, the Central Bank of our country also takes measures duly, considering that add social financing scale index into the intermediate target of monetary policy system.Then the aspects and the degree of the external financing environment affecting monetary policy is a problem deserving to study in the macro economic and financial research field, but also macro-control objectives achievement.The paper is using social financing scale and structure as the starting point to analyse the impact of changes in social financing structure on monetary policies in china. Firstly, we describe the new concept of social financing scale, then introduce the constitution of the social financing scale, especially analyze the change of the society financing structure, and then analyse the impact of the change in the social financing structure on the tools of monetary policy, intermediate target of monetary policy transmission mechanism of monetary policy to analyze its impact on monetary policy. When we analyse monetary policy tools, we find that the change of the social financing structure weakens the efficiency of the statutory deposit reserve rate and re lending rediscount policy in the implementation of monetary policy, and strengthens the efficiency of open market operations. When we analyse the intermediary target of monetary policy, we find that effect of the loan scale index as the the intermediate target decreased significantly, and the effect of monetary supply is also declining, while the correlation degree between the ultimate goal and social financing scale is very high. Therefore, we can consider social financing scale to be added into the intermediate target of monetary policy system. in the analysis of the transmission mechanism of monetary policy, we mainly use a combination of theoretical and empirical methods to analyse the transmission mechanism of monetary policy in the credit channel and the interest rate channel. We add social financing structure as one of the variables and select two spans to contrast the impact of the change of social financing structure on the transmission mechanism of monetary policy. We finally find that social financing structure makes the monetary policy credit transmission channel blocked, and the interest rate transmission channel work.Through the above analysis, we give the suggestions and opinions to improve the effect of China’s monetary policy under the background of social financing structure changing. The suggestions include three aspects:First, adjust and innovate the tools of monetary policy. Secondly, construct a multi-variable intermediate target of monetary policy system. Finally, dredge the monetary policy transmission channels.