Research On The Influence Of Interbank Business Development On The Transmission Of Monetary Policy

In recent years,the rapid development of inter-bank business has gradually deepened the dependence of banks on inter-bank funds,weakening the effect of quantitative monetary policy transmission in credit channels,resulting in the decline of the effectiveness of quantitative monetary policy instruments,and the beginning of monetary policy.monetary policy began to shift from volume to price.And as peer-to-peer funds are used as wholesale funds,banks' reliance on peer funds continues to increase,making banks more sensitive to market interest rates(base currency prices)(Wo Ge,He Wei,2014),making banks vulnerable to market interest rates.(Wu Ge,Li Bin,2016).Moreover,the liquidity changes brought about by the maturity of the maturity have caused the problem of commercial bank maturity mismatch to become more and more serious,which has aggravated its procyclical characteristics(People's Bank of China Huizhou City Center Sub-branch Task Force,2016).It also further aggravated the volatility in the financial market and weakened the effectiveness of the original liquidity management tools(Pan Bin et al.,2018).And because the pricing of interbank business has already been marketized,it has promoted the development of bank interest rate marketization.Then,will the continuous development of inter-bank business affect the impact of policy interest rates on bank deposit and loan interest rates and promote the improvement of interest rate transmission mechanism?Therefore,this paper attempts to closely combine the development of inter-bank business with the transmission of monetary policy.First,it analyzes the impact of the development of inter-bank business on the transmission of China's monetary policy in credit channels and interest rate channels.Under the background of the current interest rate marketization and the continuous development of inter-bank business,with the continuous smooth flow of interest rate transmission channels in China,whether the development of inter-bank business can promote China's monetary policy in the process of China's monetary policy transformation from quantity to price The transmission,and the method of breakpoint regression,further explore the impact of the development of China's inter-bank business on the transmission of monetary policy under the interest rate marketization time node.Through the data of 70 commercial banks between 2006 and 2017,the empirical analysis draws the following conclusions:(1)Quantity-based monetary policy In the transmission of credit channels,inter-bank business will weaken the transmission of quantitative monetary policy in credit channels.However,the development of inter-bank business has promoted the transmission of price-based monetary policy in the credit channel.In addition,the development of interbank business of joint-stock banks has a greater impact on the transmission of credit channels than large commercial banks and local commercial banks.(2)In the interest rate channel,the development of inter-bank business will weaken the transmission efficiency of quantitative monetary policy and promote the transmission of price-based monetary policy.Moreover,the development of interbank business of joint-stock banks still affects the transmission of monetary policy in interest rate channels more than large commercial banks and local commercial banks.The rapid development of inter-bank business has increased the dependence of banks on funds in the interbank market,and has also increased the interest rate sensitivity of banks.From the regression results,the development of inter-bank business will affect the bank's monetary loan interest rate and debt interest rate by affecting the policy interest rate,and increase the impact of policy interest rate on bank interest rate,indicating that the development of inter-bank business is conducive to the smooth flow of monetary policy interest rate transmission channels.The ability of price-based monetary policy to regulate effects.(3)The development of inter-bank business has led to the continuous loss of bank deposits,which has forced the improvement of interest rate marketization.The promotion of interest rate marketization can not only adversely affect the role of inter-bank business,but also gradually improve the interest rate transmission mechanism.Under the influence of interest rate marketization,the development of inter-bank business will further weaken the effect of the transmission of credit channels of quantitative monetary policy,but it will continue to promote the transmission efficiency of price-based monetary policy in interest rate channels and credit channels.And this paper also uses the method of breakpoint regression to estimate that the promotion of interest rate marketization has a significant positive impact on commercial bank interest rates,and this effect is more obvious in local commercial banks.(4)The heterogeneity among banks is also an important factor affecting the inter-bank business' s role in the transmission of monetary policy.In particular,the development of inter-bank business of local commercial banks has a greater impact on the transmission of monetary policy.Under the background of the current interest rate marketization and the continuous development of inter-bank business,further promoting the change of monetary policy from quantity to price is conducive to the basic stability of macroeconomic and price trends.