Research On The Influence Of Capital Constraints On The Credit Transmission Mechanism Of Monetary Policy

In 2004, China Banking Regulatory Commission launched the "commercial bank capital adequacy ratio management approach",marking China's capital regulation into the "hard constraints" period. In 2012, China Banking Regulatory Commission has introduced the "commercial bank capital management approach (Trial)", to further strengthen the intensity of capital regulation. Increasingly strict capital regulation has had a profound impact on bank credit behavior. The credit channel is an important channel for the transmission of monetary policy in China, and how the improvement of capital constraint will affect the credit transmission mechanism of monetary policy in China. The research on this problem has practical significance and theoretical significance.This paper first introduces the background and significance of the topic selection,and makes an effective combing the relevant research results at home and abroad, and points out the innovation and shortcomings of this paper. Then, it analyzes the influence of capital constraints on the credit behavior of commercial banks in different regulatory periods, and analyzes the path of capital constraint affecting monetary policy credit mechanism from both theoretical and practical perspectives.Based on the theoretical analysis, this paper analyzes the influence of capital constraint on the credit transmission mechanism of monetary policy based on the quarterly panel data of 14 listed banks in China from 2006 to 2016, and uses the fixed effect model and stochastic effect model. By introducing the characteristics of bank property rights , The characteristics of economic growth, the tightening of monetary policy characteristics, analysis of capital constraints on the impact of credit transmission mechanism will change because of these characteristics and similarities and differences. The results show that for the state-owned banks, the weaker the capital constraints, the worse the credit transmission of monetary policy, the opposite of non-state banks. The faster the economic growth, the stronger the impact of capital constraints on monetary policy transmission. The influence of capital constraint on the monetary policy of different elasticity is different. The smaller the capital constraint,the better the credit transmission of the expansionary monetary policy, and the credit transmission of the tight monetary policy is not affected by the capital constraint.Finally, this paper puts forward the following suggestions: improve the capital supplement mechanism,ease the pressure of capital constraints; strengthen risk management, improve the capital regulatory mechanism; coordinate monetary policy and regulatory policies to enhance the effectiveness of monetary policy credit transmission mechanism.