The Relationship Between The Heterogeneity Of China’s Commercial Banks And The Credit Channel Of Monetary Policy

The relationship between the heterogeneity of china’s commercial banks and the creditchannel of monetary policy Monetary policy is an important tool of macroeconomicregulation and contr1．The effective transmission of monetary policy is vital for restoringmarket confidence and promoting economic development．The role and the regulatorymechanism of monetary policy have significant differences for different political andeconomic model, and the majority of domestic scholars believe that credit channel dominatesin the monetary policy transmission in China．Therefore，this paper,the one hand，enriches thetheory of the credit channel of monetary policy,on the other hand，and helps to improve theeffectiveness of monetary policy．This article makes analysis of Chinese monetary credittransmission on Bank heterogeneity from the perspective of theoretical and empirical. Firstthe paper reviews existing literatures on the credit channel of monetary policy on micro level,points out their inadequacies，and makes its direction and focus clear．Secondly, it shows theapplicability of the monetary policy credit channel in China and china’s．credit transmissionmechanism．Furthermore，it makes a qualitative analysis of the basic characteristics of themicrobodies in the From the perspective of the monetary policy effects on bank lending andloans on the ultimate goal of monetary policy，it conducts empirical analysis．We have usedthe dynamic panel method_GMM put forward by Arellano and Bond in1991to make a casestudy to examine whether the impact of China’s monetary policy on the supply of the bankcredit is dependent on the characteristics of bank’s balance sheets between2003and2010.We find the characteristics of the bank size are an import factor of impacting on theheterogeneous reaction of the bank lending to the monetary policies followed by profitability,and the last one is capital adequacy ratio.but liquidity has nothing to do with the bank lendingchannel.This paper also discusses whether the different ownership structure of banks showed adifferent reaction behavior of credit。We find state-owned banks have a greater tendency tocredit expansion,in comparison to non-state enterprises.I think Our findings have importanttheoretical and practical significance. comprehending monetary-transmission mechanismshould help policy-makers find more appropriate monetary intermediate target, Finanlly,itgives proposals to improve the efficiency of credit transmission of China’s monetary policy．...