The Influence Of Monetary Policy On Bank Risk-Taking

The traditional monetary theory ignored the relationship between monetary policy and bank risk, but the subprime crisis aroused scholars think of the risk effect. Risk-taking channel not only involves the monetary policy transmission mechanism and efficiency, but also for monetary policy and financial stability, establishing financial frictions monetary policy has important significance. This page is used the 25 banks data of 2004-2012 in China for studying the influence of monetary policy on bank credit quality and risk preference, and the action mechanism of bank risk operation in China. The study found, expansionary monetary policy will stimulate the bank risk, shows that China has the monetary policy risk taking channel. At the same time, the risk of bank leverage and bank leverage and bank risk taking is positively correlated, the financial institution have fixed or procyclical leverage ratio target, when banks shocks, the bank will sell the assets. Reduce the rate of return on assets will lead to higher risk of bank assets accounted for, and more bad assets. There is the risk taking channel profit mechanism in China, and has a negative relationship between bank size and bank risk taking. The larger bank scale is, the more conservative business strategy will be. It also may be the larger banks are more the result of tight credit monitoring and control.First of all, in this paper, we review the related literature about the monetary and bank risk-taking channel, and simply introduce the domestic research status. In the effect of monetary policy on bank rick bearing and the transmission channels of relevant theoretical research, we define the concept of bank risk bearing, and analysis the mechanism of the monetary policy transmission channels of risk bearing. Based on the analysis of the effects of the monetary policy related theory, we introduce the current research of commonly used quantitative analysis technology and method, setting the stage for later empirical testing process. This page is used the 25 banks data of 2004-2012 in China for studying the influence of monetary policy on bank credit quality and risk preference, and the action mechanism of bank risk operation in China.