Research On China's Bank Risk-taking Channel Of Monetary Policy

There are already lots of articles of research results and conclusions about traditional monetary policy transmission mechanism,but the traditional theories did not consider the situation that commercial banks and other financial institutions also play an important role in monetary policy transmission process.Until the outbreak of the financial crisis in 2008 let us realize that there exists some kind of relationship between the bank's risk-taking channel and the monetary policy transmission,which worths our attentions.Borio and Zhu(2008)put forward the risk-taking channel of monetary policy transmission,that is,the adjustment of monetary policy will first influence the corresponding transmission mechanism,affect the financial intermediaries(mainly banks),change their willingness and level of risk-taking,impel the banks to change their investment behaviors,such as the credit decisions in next year,And ultimately make some certain impacts on the real economy.There should be a bank risk-taking channel of monetary policy in our country,which means during the monetary policy transmission process,financial institutions like commercial banks are not risk neutral,not react to the monetary policy.With the completion of the interest rate marketization in our country,the economic growth is walking into the new normal stage,the central bank also tries many times to stimulate the economy by cutting rates down,At this time,there is a need to discuss the adjustment of monetary policy on bank will cause of what kind of effects,whether the effect change the effectiveness of the monetary policy,and the effect will or will not be influenced by the heterogeneity of different banks.The in-depth discussion of these contents can deepen the cognition of the transmission path of China's monetary policy,and it will also give us some useful suggestions for improving the effectiveness and accuracy of the policy,and also will do some contributions to the sustainable development of China's economy.This paper mainly studies the impact of monetary policy transmission on the risk-taking of China's commercial banks through empirical analysis.Analyze the influence of monetary policy on the risk-taking of 48 commercial banks in China between 2007 and 2016,we use system GMM estimation method,and analyze the existence of monetary policy transmission on the risk-taking of commercial banks in China,and how the micro-heterogeneity of different commercial banks will influence the willingness to risk-taking on commercial banks in China.And we will also test the results of it,and give the corresponding analyses and interpretations.The results of the paper are China's monetary policy risk-bearing channels exists.And the micro-heterogeneity of China's commercial banks,such as capital adequacy ratio and liquidity ratio,will have different impacts on the bank's risk-taking.Finally in this paper,we get the conclusion that the heterogeneity of Banks should be a reason considered when the governments are making the monetary policies,and they should use both monetary policy and macroprudential supervision,and implement differentiated regulatory standards.At the same time,since the implementing of deposit insurance systemthe in our country,corresponding policies should be formulated to deal with the moral hazard and other situations will happen in our country.