Research On Monetary Policy And Bank Risk-taking

The outbreak of the financial crisis in the United States had triggered the exploration of the relationship between monetary policy and bank risk.Many scholars believed that the long-term sustained low:interest rate affected the bank's risk identification ability and risk-taking willingness through the corresponding transmission channels,and also reduced the yield of risk-free assets,leading to the overvaluation of mortgage assets.It also had led to a decline:in lending standards and a sharp increase in loan and other excessive risk-taking behavior.Therefore,the study of the impact of monetary policy on bank risk-taking has important practical significance and theoretical guidance,which can provide reference suggestions for the formulation and implementation of monetary policy in China.In addition,as China's financial markets continue to open to the outside world,banks and other financial institutions are facing a gradual diversification of shocks.This paper analyzes the relationship between the risk-taking of listed banks and monetary policy in recent years through empirical analysis,providing empirical support for China's macro-prudential monetary policy supervision.In recent years,the statutory reserve ratio and one-year benchmark lending rate of large deposit institutions had declined year by year,and the non-performing loan rate of banks has climbed year by year,reaching as high as 1.71 trillion yuan by the end of 2017.Inspired by the 2008 subprime mortgage crisis,is there an inseparable relationship between China's current situation and monetary policy?Based on the panel data of 22 listed banks from 2009 to 2017,this paper firstly expounds the research background and significance of this paper,then classifies and summarizes the research on bank risk-taking and monetary policy at home and abroad,and adds the characteristic variables of banks,macroeconomic cycles and other factors into the model,then makes a more comprehensive analysis of the mechanism of monetary policy on the risk-taking of banks.We put forward reasonable research assumptions based on logic,and then use GMM method for empirical analysis and robustness test,finally put forward the corresponding recommendations according to the conclusions of this paper.The main conclusions are as follows:(1)Monetary policy has a significant impact on bank risk-taking.Loose monetary policy will promote bank risk-taking,and tight monetary policy will inhibit bank risk-taking.(2)The extent to which monetary policy plays a role in bank risk-taking varies with the characteristics of the bank.Banks with higher capital adequacy ratio will be influencedlargely by monetary policy,and banks with lower capital adequacy ratio will be influencedlittle by monetary policy;the proportion of non-interest income will not affect the extent of the role of monetary policy on bank risk-taking.(3)In different economic cycles,the impact of monetary policy on bank risk-taking significantly shows different.When the economy is in a downward interval,the impact of monetary policy on bank risk-taking is stronger than that of the economy in an upward interval.(4)in the different stages of monetary policy,its impact on bank risk taking is asymmetric.The effect of tightening monetary policy on bank risk is greater than that of expansionary monetary policy.