The Impact Of Monetary Policy On The Risk-Taking Of Listed Commercial Banks In China

Because of the financial crisis, a large number of financial institutions lost or even became bankrupt. After the financial crisis, some experts and scholars began to pay attention to the importance of bank risk bearing, a new kind of monetary policy transmission channels- bank risk-taking channel was put forward. The point of this new theory is that loose monetary policy will lead to higher bank risk-taking. Bank risk identification and measurement take increasing important role in monetary policy transmission in our country, so the study of the effect of Chinese monetary policy on bank risk- taking is of great significance.The first chapter introduces the reason of writing the impact of monetary policy on bank’s risk-taking, such as background and meaning. The second chapter mainly summarizes the related literature at home and abroad. The third chapter is about the traditional monetary policy transmission theory and the theory of the impact of monetary policy on bank risk-taking. The fourth chapter clarified the channel of the impact of monetary policy on bank risk-taking, including the effect of chasing interest, valuation effect, inertia effect, insurance effect. The fifth chapter is the empirical analysis. This article adopts the method of a dynamic GMM, uses the listed banks which is representative to study effect of the quantitative monetary policy tools and the price monetary policy tools on bank risk bearing. And verify the full channel of valuation effect and the pursuit of interest effect exist. Besides, make the robustness test. The results say the influence of the price monetary policy tools on bank risk- taking is not stable. The easing of quantitative monetary tools will increase bank risks. And valuation effect and chasing interest effect of price type monetary policy tools are not exist in our country, the valuation effect of the quantitative monetary policy tools in China does not exist, but chasing interest effect of the quantitative monetary policy tools exists. In addition, the competition in China’s banking industry has an influence on the risk-taking, and Bank’s risk-taking has continuity, and the influence of bank size on its risk-taking is not stable. Last chapter for policy recommendations, and put forward the coordination of monetary policy and macro-prudential regulation, strengthening the micro-prudential regulation, easing banking access standard, implementing differentiation management, strengthening Banks’ risk management etc.