Monetary Policy,Capital Regulation And Bank Risk-taking

The global financial crisis in 2008 makes people be aware of the power of the unstable financial system,so people pay more and more attention on bank risk-taking.In fact,the banks' risk is affected by many factors,of which the monetary policy and the capital regulation are two important factors that cannot be ignored.With the development of the global financial integration and the accelerating pace of the financial innovation,the microscopic behavior of banks under the capital regulation cannot keep relatively independent with the economic environment under control of the external monetary policy.Capital regulation and monetary policy have interactive effect on banks.Whether for maintaining the overall stability or maintaining the financial stability,we should pay attention to the cooperation of monetary policy and capital regulation.In the traditional bank risk-taking transmission channel of monetary policy study,considering the influence of capital regulation is very necessary.Monetary policy and capital regulation are put forward as two important influence factors.This paper selects different bank risk-taking and monetary policy indicators,the indicators are relevant and comparative.This paper studies the existence of bank risk-taking transmission channel of monetary policy firstly.The second consideration is capital regulation's influence on bank risk-taking transmission channel of monetary policy,followed by considering the influence of the listed factors.Because the listed has big influence on capital levels of banks,and capital constraints will influence the capital regulation's effect,so this paper also analyzes the influence of the listed banks simply.This paper has been divided into five parts as following.In the first part we introduce the importance and necessity of the interactive effect of monetary policy and capital regulation,and introduce the background and the value of the study,in the meantime,we summarize status of study on the relationship among the monetary policy,capital regulation and the banks' risk-taking.The second part is the theoretical analysis providing theoretical analysis for the empirical study,introducing the action mechanism of bank risk-taking transmission channels of monetary policy and the interaction influence of monetary policy and capital regulation on the bank risk-taking.In the third and fourth parts we set the empirical model and explain the empirical results respectively,and we replace the monetary policy indicator used commonly to illustrate the robustness of the conclusion at the same time.The fifth part are conclusions and suggestions,we research the influence of capital regulation mainly and the listed secondly on bank risk-taking transmission channel of monetary policy.The conclusions have been summarized as three points considering all the results above.Firstly,monetary policy has an important influence on the bank's risk-taking,and the influence relies on bank's microscopic characteristics.Secondly,the microscopic characteristics of commercial banks have a strong correlation with the monetary policy,of which the impact of capital is more obvious.Banks with different microscopic characteristics have different ability to offset monetary policy,because they are in different sensitive level.For example,bank's scale is larger and capital is more sufficient,the ability of offsetting monetary policy is stronger.Different kinds of bank's actions to the monetary policy are different,though banks are in the same capital regulation environment,because they have different scales,capital and regulation pressure,and the listed banks have different financing environment and challenges with the unlisted banks.At last the paper gives some policy suggestions.