The Research On Bank Lending Channel Effect Of Monetary Policy In A Micro Heterogeneous Perspective

In the background of China’s New Normal,macro data indicators show that our economy is faced with downward pressure.During the last two years,rate cut,reserve ratio cut and targeted adjustment are used to stimulate the economy.However,the effect has always been controversial.Due to years of interest rate control and imperfect capital market,the effect of interest rate channel and asset price channel is not very significant.And since commercial banks exert important influence on entire financial system based on their large scale,bank credit channel is thought to play a leading role in the monetary policy transmission.Early research on monetary policy effect adds up all the economic entity based on homogeneity assumption.With the development of banking industry,heterogeneity assumption is clearly closer to reality.Especially in China,the multi-level structure of finance market indirectly leaded by banks shows more diversified heterogeneous characteristics.Banks’ behavior is the key to micro-foundation of monetary policy effectiveness.Using the banks’ data during the period of 2004-2014 and the GMM dynamic panel estimation method,this paper verifies the bank credit channel in China.The results show that(1)Banks’ credit behaviors are consistent with the policy directions.(2)Micro features exert different influences on policy effects.Banks with high mobility,large-scale and adequate capital are less sensitive to the policy control.(3)High concentration will undermine the transmission effect.(4)Monetary policy shows asymmetry between loosening and tightening time.And tightening policy is stronger than expansionary one.Banks with high mobility,large-scale and adequate capital will cushion the adverse impact from the tightening policy using their advantages,however when they are faced with expansion,their reactions are similar.