The Scale Of China Commercial Bank Deposit Reserve And The Research Of Its Impact On The Bank Risk-taking Behavior

As precautionary monetary capital,deposit reserve plays an important role in the level of bank risk-taking and the stable development of financial market.The deposit reserve system originates from Europe and the United States developed countries.However,as for the banks of developed countries in Europe and the United States,whether the legal deposit reserve rate or excess deposit reserve scale are lower than the China Commercial Bank.We can't help but ask,what's reason of this?In this paper,we collect the data of 20 representative commercial banks in China.Using the generalized least squares method to empirically analyze the factors influencing the scale of the deposit reserve held by commercial banks and the degree of influence.The results show that,compared with other countries,the main reason is that the deposit and the statutory deposit reserve ratio are different.Affected by the historical culture and the actual economic development,China's household saving rate is much higher than that of Europe and the United States.This makes China's commercial banks absorb a higher amount of deposit,which has a positive effect on deposit reserve.Compared with developed countries in Europe and the United States,the People's Bank of China and decision makers of commercial banks have a strong sense of safety.In order to respond to sudden liquidity shocks,it is necessary to take preventive measures.This will increase the bank's internal liquidity reserve accordingly.And the statutory deposit reserve ratio stipulated by the People's Bank of China is relatively high.These factors working together to push up the deposit reserve of China's commercial banks.However,the increase of the deposit reserve can really reduce the level of risk-taking in banks? Does the reserve requirement for risk really work properly? Based on the above problems,the paper deeply investigates the impact of the size of the deposit reserve of commercial banks on risk-taking.We still use the data of same banks and the fixed effect model.The results show that,the increase of the excess deposit reserve will produce an illusion to bank that it has relatively strong anti-risk ability.This will cause bank policy makers take more adventure operating strategy,on the contrary,increases the level of bank risk-taking.From the above conclusions we can reach the following suggestions.First of all,our country and banks should formulate a reasonable deposit reserve policy.The policy will make the amount of deposit reserve held by the bank more reasonable.It will not only meet the demand of bank daily settlement,depositors withdraw and cope with the liquidity risk,but also not give too much incentive to the level of bank risk-taking.It will help maintain the stability of the banking industry and the entire financial system.Secondly,the People's Bank of China should strengthen its links with commercial banks and formulate policies and regulations carefully.At present,the high level of excess reserve in the banking system in China will affect the effect of monetary policy implementation.Therefore,the People's Bank of China should consider the specific conditions of commercial banks and make a targeted monetary policy,so that can accurately regulate the economic operation and promote the smooth development of the economy;Finally,regulators should pay close attention to the commercial bank's risk-taking level,especially the banks with high risk-taking level.Regulators should implement strict regulatory policies,regularly inspect the index of capital adequacy ratio,increase the punishment of the excessive risk-taking level banks,and promote banks to realize the extra cost caused by the high risk-taking level,thus reducing the risk-taking level spontaneously.