Study Of Monetary Policy And Bank Risk-taking In China

The outbreak of the global financial crisis in 2008 made scholars realize that long-term low interest rates and other loose monetary policies are one of the main causes of the crisis.This global financial crisis is due to financial institutions continuously taking on more risk.As an important part of the financial industry,commercial banks pay attention to the scholars'attitudes towards the risk attitudes of monetary policy.Therefore,it is of great significance for banks to study the risk-bearing channels of monetary policy,and for the administrators of banks and monetary authorities.All have guiding significance.According to the background of this research,this paper first defines the monetary policy,commercial bank risk and risk commitment,and sorts out the traditional monetary policy transmission mechanism and the bank risk-taking channel for monetary policy through combing the domestic and foreign literature.Theoretical and empirical analysis,and described the bank's four conduction effects of risk-taking.In terms of empirical tests,this paper is based on the financial data of 20 listed banks in China from 2007 to 2016,and has selected representative agency variables for bank risk-taking and monetary policy,using NPL ratio as the main explanatory variable.The reserve coverage ratio was selected for robustness test.The selection of monetary policy agent variables took into account the actual situation in China,and two quantitative currency instruments and one price-based currency instrument were selected.Coupled with a number of control variables,it shows that the bank's risk-taking channel for monetary policy is also affected by the macroeconomic environment and the characteristics of the bank itself.Through the system GMM method,the existence and heterogeneity of the bank's risk-taking channel of the monetary policy were examined,and the chasing revenue effect,habit formation effect,income,valuation,and cash flow effects of the theoretical analysis part were verified.The result of the loose monetary policy will make our country's bank's risk-taking level higher,commercial bank risk-taking behavior behaves continuously,and banks' capital adequacy ratio and deposit-loan ratio will have a defensive effect on this conduction channel.Finally,the paper puts forward relevant policy recommendations,including the adjustment of monetary policy,strengthening the cooperation and communication between the central bank and the bank supervision department,and including the formulation of monetary policy into China's macro-prudential system,so as to improve the risk response ability of commercial banks.