The Research On Effects Of Equity Financing Of Chinese Commercial Banks On Monetary Policy

As China’s financial market is developing gradually, banks are also increasingly commonequity financing, equity financing bank aims to supplement the capital, so as to increase thecore capital adequacy ratio of the bank capital, weakened by the role of regulation, whilebanks in the profit goal driven by large-scale lending, thus weakening the efficiency ofmonetary policy in this paper, based on the review of domestic and foreign literature, aimingat the phenomenon of theoretical and empirical research, through the relationship betweenthe operation target and intermediate target theory is the core capital adequacy ratio andmonetary policy, and then analyzes the bank equity financing effect on monetary policyeffect, then use and the impulse response, variance decomposition empirical study to verifythe theoretical derivation of VAR model. Research results show that: the sensitivitydegradation reaction of bank credit to the monetary policy, influence the core capitaladequacy ratio of bank credit, equity financing bank has weaken the effect on monetarypolicy implementation. Finally, aiming at the weakening effect of bank equity financing tothe monetary policy, and puts forward relevant policy suggestions.