Research On The Risk-taking Channels Of Monetary Policy In Commercial Banks

The accumulation of risks in the financial system led to the 2008 financial crisis,in which commercial Banks became the focus of the financial risk system.In the traditional theory,the bank is only the transmission medium of mon etary policy,and it is neutral.It will not change its risk appetite or adjust its asset allocation with the change of monetary environment.However,the study of the financial crisis gradually found that the risk precipitation and accumulation of commercial banks in the financial system could not be ignored,and the new risktaking channel theory of monetary policy came into being.This paper determines the comprehensive index of the risk of commercial banks through the combination measure,which also expands the relevant theoretical research on risk taking and is of great significance to the monetary authorities and commercial banks to prevent risks.In this paper,first of all,domestic and foreign literatures are reviewed.The transmission mechanism of monetary policy is elaborated from the perspectives of traditional transmission channels and risk taking channels.The financial data of 20 commercial banks in China in recent ten years were taken as the research sample.The principal component analysis was utilized to determine the weight of four single risk indicators,namely non-performing loan provision coverage ratio,non-performing loan ratio,risk-weighted asset ratio and Z-value,so as to form a comprehensive index that can measure the risk of commercial banks from multiple angles.Broad money growth rate(M2R)and one-year benchmark lending rate(DRATE)were selected as the proxy variables of quantitative and price monetary policies respectively.Combined with the seven variables at the micro level and macro level of banks as control variables,the systematic GMM method is used to verify the existence,heterogeneity and asymmetry of the monetary policy risk-taking channels of commercial banks.After analyzing the empirical results,it can be concluded that there are obvious channels for commercial Banks to take risks in monetary policy.Moreover,heterogeneity and asymmetry exist in this channel.According to the research conclusion,the relevant policy Suggestions based on macroeconomic regulation and bank's own perspective was put forward.It is suggested that monetary authorities should set financial stability as the intermediate goal of monetary policy.Policies should be adopted according to the assets and business structure of each bank.At the same time,the use of monetary policy should be combined with the economic situation.At the same time,combined with the current economic situation,we should use the tools of monetary policy to carry out reform and easing simultaneously.In addition,a mo re standardized risk management system should be introduced by commercial banks to further improve their own risk management systems so as to maximize risk avoidance on the basis of increasing returns.