The Research On The Impact Of Monetary Policy On Commercial Banks Liquidity Creation In China

Purpose of this paper is to study the impact of monetary policy on commercial bank liquidity creation.Monetary policy generates liquidity creation by acting on banks and other financial intermediaries.It is directly related to the real economy.Therefore,this article choose to study how monetary policy influencing commercial bank liquidity creation and how to choose the central bank monetary policy tools to promote or inhibit commercial bank liquidity creation in order to achieve a breakthrough.The main structure of this paper is to analyze the theory of monetary policy and banking liquidity creation theory firstly.Then analyzes the status quo of China’s monetary policy.By selecting 16 Banks about data of balance sheet from the second quarter of 2010 to the third quarter of 2015,getting the data of liquidity creation based on the theory of Berger and Bouwman(2009).And then these 16 banks are classified to different types of banks and different-sized banks.By selecting the interbank weighted interest rate(7 days),m2 growth rate,the statutory deposit reserve ratio,government debt as a monetary policy variables,obtain the effects that monetary policy on liquidity creation by Panel Data Models.And recommend reasonableness of proposed policy.Firstly,according to China’s specific conditions,on the basis of the balance sheet,to obtain measurements of liquidity creation,it can provide a specific method for measuring the liquidity creation.on the one hand the bank can decides itself the quantity appropriate to maintain liquidity.It can prevent the risk of a run and also reduce unnecessary idle funds.on the other hand,we can refer to this index for flexible regulation.The overall level of liquidity creation has been on the increase.State-owned commercial banks are the main liquidity creation.Large-scale banks are the main liquidity creation.Secondly,the impact of monetary policy on liquidity creation of commercial banks is significant.weighted interbank interest rate(7 days),and the statutory deposit reserve ratio are significant negative impact.The central bank of the government claims the opposite.m2 growth rate is not significant.Different monetary policy variables on different types and different sizes of banks.