A Study On Bank Risk-taking Channel Of China's Monetary Policy Transmission

The monetary policy transmission is the implementation process of using the monetary policy tools to affect the intermediary indicators,and thus act on overall economy of the community,until the realization of the ultimate goal of monetary policy.From the beginning of 1950s monetary policy transmission was emerged and in the evolution,traditionally,the monetary policy transmission channels containd the transmission mechanism of interest rate,asset price transmission mechanism,credit transmission mechanism and transmission mechanism of exchange rate.With the development of modern financial intermediation theory,the research of monetary policy shocks how to affect financial intermediary management behavior was in rapid development,on the basis of this,many scholars believe that in the process of monetary policy transmission,there is a bank risk-taking channel,thus forming a monetary policy transmission channel theory of bank risk.According to the theory,the change of the position of monetary policy has an impact on the risk identification of commercial banks,and then affects the risk portfolio.A number of studies have shown that,in a low interest rate environment,the bank would like to with high willingness to take more risk in order to gain more profits,for example,Raj an found in a 2005 study,low interest rate easing monetary policy environment,risk-free assets compared to the returns of risky assets declined significantly,the bank is likely to take a more aggressive business strategy in order to maintain the level of profits,resulting in the risk of banks rise.In the process of transmission of monetary policy in China,is there a bank risk taking channel?If this channel exists,what factors will affect the monetary policy transmission process?Based on the financial data and macroeconomic data of 15 listed banks in China from 2006 to 2016,this paper conducts an empirical study to answer these questions.Firstly,through the Houseman test to determine the model selection,and then expand the test of the model,so as to judge the existence of bank China monetary policy transmission in the process of risk sharing mechanism;on this basis,the interaction by adding monetary variables and individual banks in the regression characteristic variables,we further investigate whether the risk of bank individual characteristics the impact of the bank's undertaking.In this paper,we find that in China,there is a fact that the monetary policy transmission channel.At the same time,the study shows that the asset size,capital adequacy ratio,such as individual characteristics of the bank will have an impact on the conduction process.The policy implication of this study is as an important part of macro economic and social policy department,bank regulators and banks themselves should pay attention to the macro policy transmission path,understand the role which bank palyed and effect of monetary policy act on the risk taking level of bank,in order to make contribution to maintain financial stability and economic development.