Research On The Impact Of Monetary Policy On Commercial Bank Liquidity Creation

Commercial banks play an major financial Intermediary role in our contemporary economic society—liquidity creation.Banks offer liquidity to the economy and society.The amount of liquidity created also affects the level of economic development of the entire society.Bank liquidity has always been a hot issue,especially in these years,the “liquidity shortage” and “liability shortage” of bank liquidity in China have alternated.Liquidity risks arise when banks are unable to cope with liquidity difficulties caused by falling liabilities or increasing assets.When excess liquidity and insufficient liquidity weaken the profitability of commercial banks,it will also affect the efficiency of the allocation of economic and social financial Resources and the effect of the central bank's implementation of monetary policy.Therefore,studying the liquidity creation of banks is a subject worthy of study.The purpose of this article is to study the impact of China 's monetary policy on the creation of liquidity of commercial banks.Monetary policy affects the creation of liquidity by acting on financial Intermediaries such as banks,which is directly related to the development of the real economy.The article studies how monetary policy affects the creation of commercial banks 'liquidity,and how the central bank rationally chooses monetary policy tools to promote or inhibit the creation of commercial banks' liquidity,with a view to making breakthroughs.This paper uses the semi-annual data of the balance sheets and off-balance sheet assets of16 commercial banks from 2015 to the first half of 2019,and uses the "BB" method to construct bank liquidity creation indicators to derive commercial bank liquidity creation values for monetary policy and business Theoretical analysis of bank liquidity creation.Five explanatory variables of monetary policy were selected.Using the GMM unbalanced panel data model,the statutory deposit Reserve ratio and one-year loan Interest rate have a significant impact on the liquidity creation of the entire sample of banks.In the negative,the impact of medium-term borrowing facilities,Inter-bank lending rates,and broad money growth on the liquidity creation of all sample banks is a significantly positive conclusion.After the implementation of the new rules on asset management,monetary policy has a positive correlation with the creation of on-balance sheet and off-balance sheet liquidity,and the increase in on-balance sheet liquidity creation is greater than the increase in off-balance sheet liquidity creation.Promote the return of funds,increase the strength of loan able funds to support the real economy.In addition,different monetary policy variables are heterogeneous for the creation of liquidity of banks of different sizes.According to the empirical Results,the suggestions are proposed: the supervisory agency should establish a monitoring system for off-balance-sheet business as soon as possible;the central bank should implement a differentiated strategy for banks of different sizes and attributes;commercial banks should reasonably adjust their Internal capital structure.