The Micro Characteristics Of China’s Banksunder The Condition Of Business Patterntransformation, And The Theoretical And Empirical Examination Of The Channels Of Bank Lending

Because of the changing of the bank’s business pattern, bank financing channels evolve from the credit financing channel to multi-channel financing, thus exerting some influence on monetary policy transmission channels. This article focuses on the theoretical and empirical examination of the channels of bank lending under the condition of business pattern transformation.In the theoretical examination part, this article has carried on the economics models including the static game model between competition banks caused by transformation of business pattern, the dynamic game model between central bank and commercial bank on monetary policy effect The first model indicates that banks have the tendacy to transformation, the second model indicates that the banks’responses vary after transformation, and the decision of banks is influenced by monetary policy, while latter monetary policy is influenced by decision of banks.Empirical study chooses panel data of 162 commercial bank from 2002 to 2012, and uses dynamic panel estimation for grouping estimation and cross terms estimation to test the channels of bank lending in China, and to explore the channels of bank lending with new bank’s business pattern.The results of our empirical study indicate that:(1) the changing of the bank’s business pattern has weakened bank lending channels; (2) bank with larger interbank business is more vulnerable to open market operation and less vulnerable to required deposit rate and interest rate. (3) The profitability of commercial banks reflects some financial creativity of banks, bank with high profitability is more vulnerable to open market operation and less vulnerable to required deposit rate and interest rate.(4) bank with larger non-interest revenue is more sensitive to open market operation.Finally, the changing of the bank’s business pattern exerts some influence on monetary policy transmission channels. As a result, the regulator should put more emphasis on this new banking business part. The trends of regulation are:(1) the focus of regulation lies in financial risks;(2) the principles of regulation lies in finance practice which indicating actual risk taker;(3) the methods of regulation lies in marketization, and open market operation is playing more and more important role.