The Influence Of Financial Disintermediation On China’s Monetary Policy Transmission

Financial disintermediation phenomenon first occurred in the United States,which financial system and capital markets are perfect.The USA issued a regulation on the deposit interest rate called Q Regulation.The regulation makes market interest rates than bank interest rates to be higher, so that the funds directly bypassing the commercial banking system allocated to the demand side through the securities market. Since then, the financial disintermediation phenomenon has happened in other countries, and spread to emerging markets. With the gradual development of China’s capital market, gradually speeding up the pace of financial reform, accelerating the process of marketization of interest rates,our financial disintermediation is gradually revealed.The appearance of financial disintermediation makes the whole conducting process of monetary policy has become more complex by inpacting on the banking system, and also affect the ultimate goal of the central bank monetary policy. The emergence of financial disintermediation has its unique causes and some unique features, study impact of financial disintermediation of monetary policy transmission will not only help to further improve the central bank monetary policy and increase its effectiveness, but also has important practical significance to the reform of China’s financial markets.Through theoretical analysis and empirical measurement, on the impact of financial disintermediation various transmission channels of monetary policy to do a thorough analysis. For the interest rate channel, the credit channel, asset price channel each build two VAR models, the second VAR model for each channel added financial disintermediation indicators for comparative analysis of the impulse response, the results showed that: financial disintermediation enhanced rates conduction channel effect, but the role of the interest rate channel is still very limited, is not able to dominate. Secondly, reducing the role of financial disintermediation of bank credit channel, but the role of bank credit channel in the early conduction process is still very significant, its role can not be ignored. Finally, the promotion of the role of financial disintermediation asset price channel, the development of the capital market, so that the proportion of direct financing increased, reducing the financial friction, but the stock market in a speculative bubble will bring volatility conduction effect.Finally, The essay makes some suggestions in the context of financial disintermediation to improve the effectiveness of monetary policy conduction. First of all,improve marketization of interest rates actively.Secondly,give full play to the role of bank credit channels.Thirdly,improve the financial market system and promote coordination of the money market and capital market development.