Research Of The Effect Of Monetary Policy Adjustment On The Credit Supply Of Different Scale Commercial Banks

As an important means of macroeconomic control, monetary policy plays animportant role in stabling finance and promoting economic development. As a vital linkin the transmission of monetary policy, commercial banks directly affect theimplementation effect of monetary policy. However, monetary policy has differenteffects on commercial banks of different scales, which weakens the effect of monetarypolicy to a large extent. Therefore, it has very important theoretical significance andrealistic significance to study the effect of monetary policy on the credit supply ofdifferent scales commercial banks.In order to study the effect of monetary policy to the credit supply of differentscales commercial banks, in this paper, using the method of comparative analysis,normative analysis methods and empirical analysis. Firstly, this paper summarizes therelevant theories, which provides the theoretical foundation for the following writing.Secondly, the paper classifies our commercial banks into large ones and joint-stock onesbased on the different scales. Through comparing the assets size, credit structure, theratio of bad loans, and capital ratio, the paper concludes that the large commercial bankshave advantages in assets, liabilities, capital ratio, but the joint-stock commercial bankshave advantages in the rate of bad loans, credits. Finally, in order to analyzing theimpact of monetary policy on the credit supply of different scales commercial banks,this paper selects four variables which are the monetary supply, the deposit reserve ratioof commercial banks, the loans and the industrial added value to study the relationshipbetween the application of monetary policy and the credit supply, then it concludes thatthe joint-stock commercial banks plays a more important role in the monetary policytransmission. At the same time, it shows that the credit supply of both the largecommercial banks and the joint-stock commercial banks has a significant impact on thereal economy. Based on the above research, this paper proposes the following policy suggestions:(1) use the monetary policy tools more flexibly, speed up the launch of the newmonetary policy;(2) increase the sensitivity of the large commercial banks to themonetary policy, change the operating mode;(3) enhance the support to the joint-stockcommercial banks.(4) the improvement of bank assets, liabilities and the rate of badloans. The innovation point of this article is mainly reflected in the division ofcommercial banks, previous studies studied the commercial banks as a whole，this paperhas carried on the discrimination to the commercial banks according to their scale.