The Influence Of Bank 's Heterogeneity On The Effect Of Monetary Policy On Credit Transmission

Given the commercial banks playing a dominant role in the financial system, the credit channel is still the main channel of monetary policy transmission in China. Monetary policy changes the bank credit supply, can also deduces that many kind of banks act differently in front of monetary policy impact. Commercial bank plays an important role of the monetary policy transmission, which determines the monetary policy transmission effect. Under the unified monetary policy, the banks with different characteristics may act differently in the credit supply, weaken the effectives of the monetary policy transmission. Therefore, we need further study on bank heterogeneity influence on monetary policy credit conduction and analyze the blocking cause of the monetary policy conduction, so as to help the central bank to take different fine-tuning operations to the different bank, in order to increase the effectiveness of monetary policy transmission.In this paper, we analysis the financial environment of bank credit conduction channel system in our country, and demonstrate the premise condition of China’s bank lending channel, and expound the bank key heterogeneity characteristics. At the same time, on the basis of Kishan & Opiela (2000), Andries & Billion (2010), we establish a theoretical model of a simple bank-the real economy model, and in theory, we study the banks’credit conduction behavior under the monetary policy. In this paper, on the basis of previous studies, we use a balanced panel model, considering the influence of bank asset scale, the condition of capital, liquidity, profitability, operation efficiency on monetary policy credit conduction, and further divided the samples into two subsample, including state-owned Banks and small and medium-sized Banks, that is to say, equity structure characteristics are also taken into account. In addition, the comprehensive group method and the crossover method are both adopted to estimate. The results show that:size characteristics is the most important factors which influence the conduction of monetary policy; the profitability level of Small and medium-sized Banks presents positive correlation with the monetary policy credit conduction; the effect of capital and liquidity levels on monetary policy credit conduction is not significant; the relationship between the monetary policy credit conduction and bank operating efficiency is fuzzy.Through the above analysis, this paper presents some policy suggestions to increase the effect of monetary policy conduction under the background of bank microscopic differences:on the one hand, the national related department should develop the most reasonable monetary policy regulation according to the different banks, at the same time to strengthen the supervision of the bank microscopic behavior. On the other hand, banks need to control the assets under the reasonable scale and enhance the management of nonprofit.