The Study Of Risk Taking Channel Of Monetary Policy For Commercial Bank

After the financial crisis in 2008,when scholars started to analyze the factors that lead to this crisis,they found that there is a sound relationship between expansionary monetary policy and this crisis.Borio and Zhu(2008)gave the definition of Risk-taking channel of monetary policy for the first time in a working paper in Bank of international settlement.Risk-taking channel of monetary policy refers to : the stance of monetary policy can influence the level of durance and sensitivity of a bank to risks,and therefore influence its attitude to credit investment before issuing loans,and indentures of price and non-price in a loan,as a result,the risk-taking level of the bank will increase.The Risk-taking channel of monetary policy is an important supplement of traditional transmission channel,such as loan transmission channel,interest transmission channel,and asset transmission channel.In the theory of traditional transmission channel,commercial bank was only regarded as an intermediary without considering the effects of monetary policy to commercial bank.While as the theory of Risk-taking channel conveys: the stance of monetary policy can influence the the level of durance and sensitivity of a bank to risks,and therefore its level of risk taking.The key points in theory are as following: Firstly,this paper analyzed the mechanism of risk-taking channel;secondly,this paper make a difference between risk-taking channel and traditional monetary policy mechanism;Finally,based on the analysis of the phenomenon of monetary policy in China and the phenomenon of risk-taking of Chinese commercial bank,this paper try to proof the existence and its factors of risk-taking channel in China.Based on the unbalanced panel data of Sixteen Listed banks in Shanghai Stock Exchange and Shenzhen Stock Exchange from the year of 2003 to 2013,We got the following conclusions:(1)The Risk-taking channel of monetary policy is existed in China and asymmetrical which means Expansionary monetary policy increase risk taking level of commercial bank and tight policy will do the opposite.(2)Factors of macroeconomics,such as GDP growth rate,Housing Price,competitive degree among Chinese banking industry will influence risk-taking level of commercial bank.(3)The micro characters of commercial banks themselves can influence risk-taking level of commercial,For example,high capital adequacy ratio,high liquidity ratio,high net interest difference,and large size of commercial bank can increase willingness and level of risk-taking.(4)The influence of monetary policy to the level of commercial bank's risk-taking before financial crisis is larger than the influence after financial crisis,owing to the strengthened control mechanism and regulation.