Monetsry Policy、equity Structure And Bank Risk-Taking

The international financial crisis dating from 2007 has made academic and political circles pay attention to the effect of monetary policy to financial stability.Although it’s difficult to prove that the loose monetary policy is the root of the crisis,it plays an impartant role in the formation of the crisis.Many literatures directly point out that USA’loose monetary policy of low interest rates since 2002 is the main cause of the crisis.Since then,most empirical studies point out that the loose monetary policy will lead to the imbalance of financial system through improving the level of bank risk-taking,pointing out that the relationship between monetary policy and bank risk-taking is called risk-taking channel of monetary policy.The channel reveals that a effective monetary policy which can curb inflation,promote the economic growth is likely to go against the financial system’s stability.Since then,the monetary authorities began to reflect on the relationship between monetary policy and financial stability,reviewing its target category and transmission mechanism.At the same time,in the deeper analysis of the cause of this crisis,the effect of equity structure on bank risk-taking has received wide spread attention.Most studies point out that the unreasonable equity structure and unsound management mechanism are one of the important causes of this crisis.But looking from the domestic environment,after the joint-stock reform,although the equity structure of our commercial banks gradually presents the trend of diversification,but compared with other countries,higher equity concentration and state-owned shares are still the typical characteristics of equity structure.These characteristics affect the level of bank risk-controlling,if the bank processes improper on risk control,it is easy to trigger financial crisis.Therefore,based on that background,this paper,by using 2007-2013 China’s 16 listed banks’ unbalanced panel data,studies the effect of monetary policy and equity structure on bank risk-taking and studies the difference of monetary policy and equity structure’s effect on bank risk-taking between listed state-owned banks,joint-stock banks and city commercial banks.The effect of different listed banks’ equity structure on bank risk-taking exists difference.Finally,based on summarizing,putting forward relevant policy suggestions,in terms of monetary policy:improve its operation mechanism,actively cooperate monetary policy with financial regulation policy,accelerate the process of interest rate marketization,improve the dynamic adjustment mechanism of monetary policy to implement its inverse cycle operation;in terms of equity structure:optimize equity concentration,reasonably adjust equity nature.