The Study On Regional Effect Of Monetary Policy On Bank Credit Structure

To realize a special economic goal,a country’s central bank uses various tools and measures of monetary policy to regulate and control the money supply and interest rate,affecting total supply and total demand of the society.China’s monetary policy objective is to maintain the stability of the currency,and to promote economic growth.The adjustment of monetary policy is the total.The traditional view is that monetary policy will have an unified national implementation effect,but this view obviously neglect non-balance of financial development in a country.The regional economic and financial integration operation is the premise of effective implementation of a unified monetary policy.However,in our country,because of differences between each region’s economic development situation and financial environment,when implementing a unified monetary policy,there are obvious different effects in different areas,these differences not only can not achieve the monetary authorities expected effect, but also greatly may weaken or even distorted the monetary policy implementation effect,at the same time,also increase the regional economic development gap,and even result in the economy "negative growth" in some areas,and hinder the coordinated development of regional economy,which requires China’s monetary authorities to suit one’s measures to local conditions to formulate monetary policy,according to the targeted monetary policy different features in different areas or provinces.In recent years,with the rapid development of China’s economy and the central bank’s frequent use of monetary policy,regional differences of monetary policy effect is more obvious in front of us,therefore,how the central bank in consideration of various economic regions of imbalance to make it play the biggest effect,it is especially important.In this paper,Taking the regional effects of monetary policy as a research starting point,Firstly,we study the regional effect of monetary policy on domestic and foreign literature review,then our country actual situation analysis tells us that there is regional effects of monetary policy.Secondly,through the comparison of various transmission channels of monetary policy,we conclude that the bank credit channel is the main channel,so we view it as the starting point to do the following empirical analysis.In the empirical analysis,we select provincial panel data of the country from 1998 to 2008(except Tibet).According to the credit structure,we divide the credit loans and establish Dynamic Panel data model, then using the System GMM proposed by Bond and Blundell to analyze the difference between different kinds of loans for economic growth in all regions.The empirical analysis results show that: the industrial loan has a larger influence on the West and the northeast area;commercial loan has significant impact on the eastern region;the agricultural loan has a larger influence on the northeast region;the infrastructure loan is significant for all the economic zones.In addition,short-term loans lagged one period have little impact on the current economic,and the impact of the lagged period and the current period on economic growth are different,and agricultural loan lagged one period has a more significant influence on each region economy.Finally,according to the empirical analysis conclusion,we put forward some suggestions to narrow the regional effects of monetary policy in china.Specific measures are:(1) Make various economic policies cooperate and guide funds flow into the industry the country promoted;(2) Different credit policy;(3) Consumer credit securitization.this policy can not only stimulate economic growth in the current,also can prevent major economic fluctuations in the late control credit risk;(4)Execute the regional reserve policy;(5)Execute the regional re-discount policy;(6)Implement the regional re-lending policy.according to the difference of regional economic development in each area,we suggest make reasonable system of the loan to support the policy.These suggestions are of great significance to enhance the effectiveness of monetary policy and to improve the regional development gap in china.