Research On Credit Resource Allocation Behavior Of Commercial Banks Based On The Directionally Reduced

Chinese economy has experienced 30 years of rapid growth while the extensive development manner is difficult to sustain in the complex market environment today, and it is changing to the new status. After the "money shortage incident" occurred, Chinese monetary policy framework began to rely much more on the balance sheet than the benchmark interest rate and credit scale. Directionally control monetary policies such as directionally reduced RRR shows the new development directional. But domestic researches on those monetary policies in-depth are still needed currently.This paper analyzes the influence of the directionally reduced RRR on the commercial banks’ credit resource allocation behavior with the theoretical modeling and computer simulation methods.Refers to theoretical modeling part, first this paper reviews lots of researches. Secondly it establishes the intertemporal utility function of commercial banks about three types of loans in a credit rationing environment, and the directionally reduced RRR requirements are regarded as constraints. The paper finds that profit of commercial banks can be closely related to interest rate upper limit, and the total revenue of commercial banks will meet its maximum value at the upper limit of the interest rate. Thirdly, the paper discusses different conditions on the credit resources allocation behavior under the influence of directionally reduced RRR monetary policy.Refers to the computer simulation experiment part, this paper simulates the utility function of commercial banks with mat lab, and the results verify the conclusions on the relationship between loans revenue and loan upper interest rate.Finally, this paper proposes some suggestions on improving the monetary policy effects based on the conclusions from the theory model and simulation results.