The Impact Of Negative Interest Rate Policy On The Banking Industry And Its Implications For China

This paper mainly studies the transmission mechanism of negative nominal interest rate and its impact on the bank profitability as well as risk control ability.In the first chapter,the nature of interest rate,decision mechanism and the conduction of conventional interest rate policy are introduced by a rather detailed literature review,which eventually illuminates the reason why the price of money assets become negative.In the second chapter,more specific information about how the six economies recently implement negative interest rate policies economies of policy implementation.In addition to members of the negative interest rate "club",A panel data is constructed by other G10 countries and Australia which are chosen as control group become of similar economic background and interest rate environment,which thus is to analyze the effect of economists adopting negative interest rate on short-term market interest rates,the influence of the long-term market interest rates and term structure of interest rates,which is supposed to by more significant than standard policies.In the third chapter,this dissertation suggests that the influence of negative interest rates policy on the bank industry comes from the term structure of interest rates and interest rates itself,which is proved through overall samples and representative individuals.Finally,the thesis expects that negative interest rates policy causes changes of bank behaviors by affecting the market interest rates,which further lead to the differences of the social credit scale and structure.Furthermore,macroeconomic changes deeply.According to the research on macroeconomic situations,the fifth chapter gives some advice to the market-oriented reform of interest rate as well as the construction of of monetary policies facilities based on the conclusions above.