The Effectiveness Of Interest Rate Transmission Of Monetary Policy From The Perspective Of Residents In China

Improving the formation of marketization interest rate and transmission mechanism,and improving the central bank’s policy interest rate system have become an important task in the future,as China continues to deepen the structural reform of the financial supply side.It requires that the monetary policy interest rate has good transmission efficiency and effect,that is,the monetary policy interest rate should be effectively transmitted to the prices of different financial markets and various financial assets,such as deposit&loan interest rate and financial asset interest rate.But the operation mode of China’s monetary policy is obviously different from that of mature market economy countries,and some new financial segments will emerge with marketization reform.Therefore,studying the effect of monetary policy on the macrocontrol of such financial markets can not only verify the effect of reform,but also monitor the development direction of emerging financial segments.First of all,this paper constructs a monetary policy interest rate transmission model in theory considering innovative financial market,which is divided into three channels;Secondly,we study how monetary policy impact on Residents’ direct debt financing cost by using residents’ micro lending data,and test the intermediary effect of money market and commercial banking system.We find that the LRB plays a leading role in the transmission chain,and the money market interest rate is the blocking node of the effective transmission of monetary policy transmission,and the commercial bank system still plays an important role in the transmission chain and has a significant intermediary effect on the transmission of monetary policy and interest rate.Finally,we find that the release of the central bank’s interest rate marketization policy can strengthen the effectiveness of monetary policy interest rate transmission through grouping regression,and through quantile regression test,we find residents with high financing costs are more sensitive to the changes of macro interest rates in the money market and commercial banking system,while all residents are generally more sensitive to the benchmark interest rate.This paper may be innovative in the following three aspects:(1)Few empirical analysis is conducted from the perspective of residents’ direct lending among the current quantitative research on monetary policy transmission.This research creatively uses the order data of residents’ online lending to explore the transmission of several key nodes in the interest rate transmission mechanism of monetary policy.This provides a research path and evidence to study how China’s monetary policy regulate the emerging financial market segments;(2)This paper selects the benchmark interest rate(LRB),SHIBOR and the weighted average interest rate of general loans of financial institutions(LR)as the proxy variables of monetary policy money market interest rate and commercial banking system interest rate,starting from the monetary policy interest rate transmission model.But the choice of monetary policy variables is relatively single.And the mediating effect in the transmission process is tested.(3)Interest rate marketization is an important part of China’s financial reform.This paper also tests whether the interest rate marketization reform can strengthen the effectiveness of monetary policy interest rate transmission from the perspective of residents’ direct lending.