The Impact Of Counter Cyclical Regulatory Tools On Monetary Policy Under Macro Prudential Framework

The outbreak of the financial crisis in 2008 exposed the lack of understanding of banking regulatory system based on Basel II.Under the background of the crisis,the Basel Committee has speed up the reform of banking regulatory reform.It has issued several documents to emphasize the combination of micro prudence and macro prudence to strengthen the coordination between macro prudential supervision and monetary policy.The Basel Agreement III,which was formally promulgated in late2010,marks the beginning of macro prudential supervision by commercial banks,and also marks the new stage of counter cyclical financial supervision.Basel Agreement III stipulates the minimum capital adequacy ratio and liquidity ratio,and arranges the transition period.Therefore,against the Basel Agreement III,we choose the reverse cycle financial basket tools,such as capital adequacy ratio and liquidity ratio,to study the impact of reverse cycle financial supervision on monetary policy.First,it introduces the background and significance of the research,as well as the literature review of macro prudential regulation and counter cyclical regulatory tools.Secondly,it introduces several traditional monetary policy tools and the counter cycle tools after the Basel Agreement III and their influence on the monetary policy in theory.Thirdly,using the macro economic data of China from 2005 to 2017 and the quarterly data of 5 state-owned commercial banks,using the research method of panel data,the capital adequacy ratio and liquidity ratio are added to the deposit reserve ratio,interest rate and CPI,and three panel data models are established,and the results are judged according to the results of the test.The effect model should be set up,and the result shows:First,reverse cycle regulatory tools,such as capital adequacy ratio and liquidity ratio,have a binding effect on monetary policy.Second,the change of credit amount has a positive relationship with the capital adequacy ratio,and a negative relationship with the liquidity ratio of the bank assets.Third,the reverse cycle financial supervision will affect the operation of the financial machinery and make the monetary policy correct.The impact and reaction of bank credit is more complex.Finally,based on the analysis of the empirical research,the paper puts forward how to make use of the counter cyclical monitoring tools after the Basel AgreementIII to draw up the monetary policy of our country,and to make a prospect for China's macro prudence in the future,combining with the current reform of China's financial system.