Research On The Bank Credit Channel About The Monetary Policy Transmission Of China

Monetary policy is an important tool for national regulation of economy. Through the use of monetary policy, the state could regulate the supply of money in society and finally make an impact on social life. Among a variety of monetary policy transmission channels, bank credit channel is the most important channel. This is decided by the long-standing Enterprise financing character and the important position of bank in the field of credit financing in our country. The central bank influences the size of credit of commercial banks through develops and implements monetary policy.With the rapidly changing of world economic and China becomes the world’s second largest economy entity, Chinese economy has become increasingly integrated into the world economy and China’s economic development has become increasingly profound impact on the development process of the world economy. After the occurrence of the global financial crisis which happened at 2008, China’s economic growth has also been affected deeply. The economy growth is reduced and enters a New Normal. The economy wants to get a soft landing. New Normal will become the new trend of economic growth in the coming period. Influenced by history and culture, the bank plays an irreplaceable role in China’s economic and social operation. Banks own enormous capital. If China’s real economy is affected by the world, the banks will also be affected. Then explore the effect of monetary policy on commercial bank credit at this Period will have more practical significance.The effect of the implementation of monetary policy for different types of commercial banks are different, and this difference can be divided into two aspects: on one hand, the monetary policy have different effect on the five big state-owned commercial banks and joint-stock commercial banks which have nationwide influence, the influence on city commercial banks which have been listed is different from the other two type banks. This paper will analysis the different reactions of these three type commercial banks to the monetary policy which are implemented by the central bank; on the other hand, the type of monetary policy which can be used by central bank are increased greatly. As to the people’s Bank of China, the most frequent use of tools which can be grouped into three categories include open market operations, reserve ratio and deposit-reserve ratio. Three different tools have different influence on different commercial banks. This paper will discuss the reaction of different commercial banks to these three tools. This paper will analyze the data to study the empirical conclusion to these two questions, and finally provide theoretical support to monetary authorities to make differentiated monetary policy.This paper selects the data from 2005 to 2014 to do empirical analysis. Considering availability and representative of samples, I select the assets, capital adequacy and liquidity size and other data indicators of 13 commercial banks which have been listed on the market, and use dynamic panel data estimation methods for regression analysis and finally get the following conclusions: the credit amount growth of different bank will be affected by different monetary policy differently and different monetary policy tools will also have different effect on the growth of bank credit.1. For the five state-owned commercial banks, if we want to limit its loan growth, we should focus on the banks which issued large scale loan in previous periods. They may be required to raise their capital adequacy ratio.2. For joint-stock commercial banks, we can reduce the growth of the loan by raising interest rates. While us also focusing on those banks which issued large loan before.3. Urban commercial banks, monetary authorities can consciously focus on those banks which maintain a high level, because it is also very likely to continue to maintain a high level at the current level of loans, if necessary to reduce the size of the city commercial bank loans, we can improve the city commercial bank’s capital adequacy requirements or increase the level of inter-bank offered rate.