Research On The Impact Of New Monetary Policy Tools On Bank Credit And Liquidity

At present,in the face of changes in the past century and the complicated international economic situation,China insists on implementing a prudent monetary policy to promote the stable operation of the macro economy.China has launched a variety of new monetary policy instruments,with the goal of playing an important role in the following aspects:first,to maintain reasonable and sufficient liquidity,guide and encourage financial institutions to provide credit,and increase their support for the real economy;Second,give full play to the dual functions of aggregate and structure,pay special attention to key areas and weak links of the national economy,achieve"precision irrigation",and encourage financial institutions to provide credit support;Third,give play to the guiding role of interest rates,regulate the cost of social financing,and achieve a virtuous circle between finance and the real economy.Whether the use of China’s new monetary policy tools can play an effective role,how to affect liquidity and bank credit,and what practical effects it has on the real economy are all worth indepth research,which is of great significance to China’s economic development.This thesis selects three representative new monetary policy tools:Medium-term Lending Facility(MLF),Standing Lending Facility(SLF)and Pledged Supplementary Lending(PSL)to study the impact of the implementation of monetary policy on bank credit and liquidity during the epidemic of COVID-19.China is undergoing the transition from rapid economic growth to high-quality development.In order to adapt to the new changes in development,we are actively adjusting the monetary policy framework.A sound modern monetary policy framework is the basis for implementing a sound monetary policy and promoting high-quality economic development.In recent years,China has successively launched new monetary policy instruments such as Standing Lending Facility and Medium-term Lending Facility,which has enriched the monetary policy instrument system.This thesis focuses on the new monetary policy tools,explores how to realize operation and regulation on the basis of traditional monetary policy,and mainly studies the impact of the use of monetary policy tools on bank credit and liquidity.At present,the goal of China’s economic development is sustainable development,focusing on both quality and efficiency,and the monetary policy focuses on the adjustment of aggregate and structure.First of all,the implementation of the new monetary policy has expanded new channels for liquidity release and can ease the liquidity constraints of banks and other financial institutions.Secondly,use new monetary policy tools to form interest rate transmission mechanism,explore and play the role of interest rate corridor,and realize the guidance and regulation of market interest rate.Finally,through the joint application of various monetary policy tools,we can dredge the transmission channel of monetary policy,regulate the financing cost,promote the reasonable expansion of financial institutions’credit,and help the real economy.This study focuses on the new monetary policy tools and combines the characteristics of commercial banks to explore the impact mechanism of the implementation of monetary policy on bank credit and liquidity,selects three monetary policy tools,namely,Medium-term Lending Facility,Standing Lending Facility and Pledged Supplementary Lending,and collects relevant data from the first quarter of 2019 to the third quarter of 2022,taking 31 commercial banks as the research object,according to the functional role of the new monetary policy tools,Test the implementation effect of monetary policy.First of all,it studies the impact of new monetary policy tools on bank credit,bank liquidity and inter-bank system liquidity,then studies the transmission path of monetary policy,and finally explores the actual effect of market interest rate and bank liquidity on the effect of monetary policy on bank credit.Finally,the relevant economic implications are drawn and the regression results are summarized to provide theoretical basis for further research on how monetary policy affects financial institutions and the real economy.