Study On The Regional Difference Of Monetary Policy Effect In China From The Perspective Of Bank Lending Channel

China is a country with multiple provinces. The main implementation of unified monetary policy has continued for a long time in it. With rapid development of national economy in these years, the imbalance of regional development is increasingly highlighted, and the regional difference of monetary policy effect is also on the front of us. To verify and compare the difference, understand the influence factors of it, put forward policy suggestions to solve it, so as to reduce the regional difference of monetary policy effect, promote the coordinated development of regional economy and finance, which has a typical practical significance.On the basis of predecessors’ research, this article embarks from the bank lending channel perspective, selects four regional data in China from 1978-2012, uses VAR to conclude that there has different effect of monetary policy in different area of China. No matter from the view of output or the view of price level, the effect of monetary policy in the eastern region is greater than the other three areas. Secondly, we take the variable coefficient model to estimate the regional credit elasticity by using the provincial panel data between years 2001-2012. Our estimation results show that through the bank lending channel, the output effect of Monetary policy in the eastern region is more obvious than the other three areas. In addition, there is also a certain degree of difference in elasticity of credit among different provinces.In order to explain the cause of these differences, the author tries to do research by the integrated use of normative analysis and empirical analysis, and then found that there are some differences among the four areas in economic and financial development level, industrial structure, financial structure and enterprise structure. These differences have a strong correlation with the regional output effect and price effect of monetary policy. Therefore, the paper argues that the regional differences, which about productivity level, industrial structure, financial development level and enterprise structure, make the implementation of unified monetary policy much more difficult.Finally, the paper draws a conclusion, and then puts forward some policy suggestions. In the short-term stage, implementing regionalization of monetary policy within the premise of unified monetary policy could weaken the regional difference of monetary policy effect. In the long run, we should constantly optimize the structure of regional economy, prompt the balanced development of regional economy, to solve the regional difference of monetary policy effect from the source.