Aquantitative Study On The Effect Of Bank Liquidity On The Bank-lending Channel Of Monetary Policy In China

For commercial banks,liquidity is particularly important,and it has been the lifeline of the development of commercial banks.In the process of monetary policy transmission,the bank liquidity will have an impact on the effectiveness of the policy,and for the banks with antiquate liquidity,will be better to hedge the impact of tightening monetary policy.At the same time,with the improvement of interest rate liberalization and financial innovation,both to the bank's liquidity impact,the impact of bank liquidity on bank credit channel of monetary policy will change.Therefore,the study on the effect of liquidity on the credit channel of monetary policy banks is particularly urgent,but domestic researches on this aspect are not enough.Based on the background above,this paper attempts to further study the impact of bank liquidity on the bank-lending channel of monetary policy.This paper is based on the previous research and the actual situation in China,and in this paper,we analyze the influence of bank liquidity on the bank credit channel firstly,and then put forward four hypotheses.Then,the empirical model is established,and the hypotheses are verified by the sample data of China listed banks in 2005-2014.The results show that the bank liquidity will weaken the effect of monetary policy bank-lending channel,the stronger the liquidity is,the banks can hedge the impact of tightening monetary policy much easily.In addition,the size of the bank will reduce the impact of bank liquidity on the bank-lending channel of monetary policy,while both the bank interest rate liberalization and the development of the shadow banks,will have an reverse impact on the liquidity of the bank,so as to strengthen the influence of bank liquidity on the credit channel of monetary policy bank.Finally,based on the empirical results and the actual situations in China,this paper gives the following policy implications: First,the bank credit channel is still one of the important channels of Chinese monetary policy transmission,and reasonable control of bank liquidity will have a positive effect both for commercial banks and monetary policy regulation effect;Second,the central bank should take full account of the heterogeneity of commercial banks when making monetary policy,inthe period of overheated economic,the central bank can adopt a tighter monetary policy to banks whose liquidity level is high,and in the period of contraction economic,the central bank can adopt a looser monetary policy to the banks with higher level liquidity;Third,the reform of interest rate liberalization should be a gradual process,it can not act with undue haste,and the reform of interest rate liberalization should give full consideration to the problem of liquidity risk that brought to banks in the process;Finally,moderate development of shadow banking is conducive to economic development,if beyond the boundaries,it will bring liquidity risks to commercial banks,therefore,there should be a reasonable guide to shadow banks,and make it improved to the right direction,a moderate development can reduce risks as far as possible.