The Research On The Effect Of Bank’s Maturity Mismatch On Chinese Monetary Policy Transmission Mechanism

Monetary policy is one of important macroeconomic policy in our country,the smooth conduction and the effective implementation of the monetary policy has important significance for the development of China’s macroeconomic stability,so economists always focus on the research on the regulative effect and the transmission mechanism of monetary policy.Now the financial markets in our country is still in the stage of development,bank loans are still the main source of the firm’s funds,so bank credit channel is an important channel of monetary policy transmission mechanism in our country,and bank as an important financial intermediary department in the transmission mechanism,its structure characteristics can affect the transmission and regulative effect of monetary policy.Especially now the influence of the the stable development of financial market and financial institutions on monetary policy and the real economy is increasingly obvious,so the influence of characteristics of the structure of the bank on the monetary policy shock and the macroeconomic fluctuations need more attention.This paper notes that in recent years,serious maturity mismatch phenomenons appear in our country commercial banks.With the financial products gradually enriching and the residents’ consumption ideas chaning,the residents’ savings in the bank funding is gradually shunted, but in terms of application of bank capital,a lot of money are invested into the project of roads,bridges,communications,electric power and other infrastructure construction,the period of these projects are long,so the medium and long-term loans in the banks increase gradually,especially after the financial crisis in 2008,the 4 trillion investment plan which government implement to stimulate economic development exacerbate the maturity mismatch in the banks. Therefore this paper attempts to analyze the influence of the banks’ maturity mismatch which is a banks’ micro factor on the monetary policy transmission mechanism and regulative effect,some foreign economists have researched the problem about the banks’ micro factors and the monetary policy transmission,but do not conform to China’s national conditions,most of them do the research about the pricing monetary policy instrument(interest rate),and in China the researchs about the banks’ maturity mismatch and the monetary policy are mostly based on the traditional measurement method,such as VAR model,this kind of method is lack of a micro foundation,can not analyze the banks’maturity mismatch and the monetary policy together,so this paper chooses the dynamic stochastic general equilibrium model(DSGE model)which model can combine micro and macro economic to do the research.Based on the actual economic situation in China,this paper builds DSGE model which contains the banking sector,and uses the method which in the existing literature to quantify the banks’maturity mismatch which is a banks’micro factor,and then brings it into the DSGE model to analyze the influence of the banks’maturity mismatch on monetary policy transmission mechanism and regulative effect comprehensively and dynamically.The results of the simulative analysis show that with the degree of the banks’maturity mismatch becoming deeper,the regulative effect of the deposit reserve ratio policy on investment,output and inflation will be gradually weakened;the regulative effect of the interest rate policy on investment and output will also be gradually weakened,but the influence to the regulative effect of the interest rate policy on inflation is not big.According to the results of the simulative analysis,this paper gives some relevant policy suggestions about the improvement of the maturity structure of China’s banking industry and the implementation of China’s monetary policy.