The Influence Of Monetary Policy On Risk-Taking Of Commercial Banks Under Macro-Prudential Supervision

In 2007,before the financial crisis,the impact of commercial banks’risk-taking was often underestimated in the study of financial system stability.The emergence of the United States subprime mortgage crisis has attacked this view.In the monetary policy cycle,the risk preference and behavior of commercial banks are closely related to the effectiveness of monetary policy transmission and macro-prudential regulation.Therefore,this paper studies the impact of monetary policy on the risk-taking of commercial banks under macro-prudential regulation.This paper combines the micro-mechanism with the macro-effect,and takes the easing and tightening of monetary policy as the main line of analysis,the impact of the monetary policy of the central bank on the risk-taking behavior of commercial banks and the impact on the risk-taking behavior of commercial banks of different scales have laid a theoretical foundation for the empirical analysis of this paper.This paper first studies the impact of monetary policy on the risk-taking of China’s commercial banks,and then,on the basis of this study,examines the impact of monetary policy on the level of risk-taking of commercial banks under macro-prudential supervision,finally,the heterogeneity of domestic commercial banks of different sizes is analyzed.This paper selects the annual data from 2007 to 2020 and draws the following conclusions through empirical analysis.First,the expansionary monetary policy will usually increase the risk-taking level of China’s commercial banks,the tight monetary policy will urge the banks to reduce their risk-taking level.The second is to strengthen macro-prudential regulation,which will to some extent restrain the incentive effect of the expansionary monetary policy on the risk-taking of commercial banks,at the same time,strengthening macro-prudential regulation will also,to a certain extent,effectively alleviate the restrictive effect of tight monetary policy on banks’ risk-taking,the effect of monetary policy on the risk-taking of non-systemically important banks is more significant.