Effects Of Banking Characteristics On The Interest Rate Channel Of Monetary Policy

The transmission of monetary policy has always been a hot issue in academic circles.In the traditional concept,the interest rate channel of monetary policy transmission is that the central bank formulates the monetary policy to decide the short-term interest rate and then affects various long-term interest rates in the financial market,which ultimately affects the investment,Consumer behavior and total output.In this process,whether the adjustment of short-term interest rates can be smoothly transmitted to financial markets and thus the prices of various financial assets largely determines the effect of monetary policy.As a link between the central bank and the real economy,banking industry plays a crucial role in the transmission of monetary policy.The characteristics of the banking industry will inevitably affect the transmission of policy rates to long-term interest rates,especially the lending rates.This paper focuses on the pass-through of policy rates to lending rates,Studies the influence of banking characteristics on the monetary policy transmission.On the one hand,it helps to improve the research of factors that affect the interest rate pass-through,which has a certain theoretical significance;on the other hand,it provides some reference for improving the effect of monetary policy,which has strong practical significance.This article is divided into four parts.The first part is an introduction,which comprehensively expounds the background,research significance,empirical methods and innovations of this paper,and summarizes the existing literature on the characteristics of banking industry affecting monetary policy transmission.The second part theoretically expounds the mechanism of banking characteristics affecting the interest rate channel of monetary policy.The third part is the focus of this article.In this part we use the error correction model and SVAR model to measure the effect of the pass-through of policy rates to lending rates.On this basis,it can test whether the characteristics of a country's banking industry affect this process.The results show that the effect of interest rate pass-through is obviously different among different countries,and the impact of the financial crisis in 2008 has led to a general decrease in the transmission efficiency of policy rates to bank lending rates.Encouraging the competition of the banking industry and improving the quality of loan can improve the interest rate pass-through effect.This result only changed after the financial crisis in 2008,and resumed after the impact of the financial crisis subsided.The fourth part puts forward some policy recommendations based on the empirical results: improve the financial supervision system,standardize the credit behavior of commercial banks,deepen the comprehensive reform of state-owned banks,develop small and medium-sized banks and promote the diversification of financing channels for enterprises,and this part puts forward the prospect of future research.