Research On Bank Risk-taking Channel Of Monetary Policy From The Perspective Of Loan

The US subprime mortgage crisis occurred in 2007,and the crisis led to a global financial crisis which ruined the world economy.Then,people started to think about the subprime mortgage crisis from the perspective of the relationship between monetary policy and financial stability.Finally,a scholar put forward a new monetary policy channel which was called the bank risk-taking channel.He pointed out that the loose monetary policy adopted by the Federal Reserve of the US made banks' high-risk loan and high-risk investment increase so that the bank risk-taking decreased.The reduction of the bank risk-taking made the risk of the banking system increase,and then it reduced the stability of the financial system which was triggered by the US subprime mortgage crisis.In order to deal with the bad influence of the financial crisis of the United States,China's monetary policy had greatly loosed in a short time in 2008.China's economic growth began to decline in 2012.In order to maintain the growth of the economy,China's monetary policy kept loose in a long time.Due to the bank risk-taking channel,the loose monetary policy may increase the risk of China's banking system which may reduce the stability of China's financial system.This paper study the bank risk-taking channel from the perspectives of loanincrement and loan structure.And it hopes to provide ideas for the government's formulation of monetary policy and the financial regulations so that the risk of bank system can be reduced and the stability of China's financial system can be maintained.The study of this paper is divided into five chapters.The first chapter introduces the background,significance,methods and ideas of the research,and then it introduces the innovation and deficiency.The second chapter introduces the domestic and foreign literatures,the then it makes a review of this literatures.The third chapter elaborates the conduction mechanism of the bank risk-taking channel,and then it introduces the other monetary policy transmission channels.Finally,it analyzes the identification of the bank risk-taking channel.Chapter 4 introduces the selection of samples and variables.Then it describes the models and estimation methods.From the perspective of the loan increment,Chapter 5 divides the study into two stages: the impact of monetary policy on bank risktaking and the effect of the bank risk-taking on bank loan increment.From the perspective of loan structure,this chapter selects mortgages,pledges,guarantees and credit loan's proportion of total loan as the explanatory to study.The last part is the summary of this chapter.Chapter 5 draws conclusions and suggestions to the government based on previous study.The study from the perspectives of loan increment and loan structure in this paper shows that the banks are not risk-neutral in the process of monetary policy transmission and China does have the bank risk-taking channel.In the perspective of loan increment,it finds that the loose monetary policy would increase the bank risk-taking.Then the increase of the bank risk-taking would increase the bank's loan increments.In the perspective of loan structure,the loose monetary policy would increase the allocation of high-risk loan of the bank and reduce the allocation of low-risk loan of the bank.Finally,it increases the bank risk-taking.Otherwise,the bank risk-taking channel has an impact on China's economic output and financial stability.