Research On The Credit Channel Of Monetary Policy In China

As the basic tool of macroeconomic regulation and control,monetary policy has been paid close attention to by researchers and financial workers.Whether the central bank uses the policy tools to serve the real economy depends on a great extent on the smoothness of the monetary policy transmission channels.However,China's monetary policy transmission channel has undergone a major change,from the former fully affiliated to the people's Bank of China into the central bank,indirect regulation of it,through the management of basic money and credit.With the accelerating process of marketization of interest rates Chinese and continuous development of the Chinese capital market,enterprise financing means and methods are constantly enriched and their own business mode which has been changed,too,in the meanwhile,credit channel in the monetary policy transmission process have a certain degree of decline,the efficiency of the credit channel has been weaken.In view of this,the purpose of this study is through the analysis of the status of the Chinese credit transmission channel and causes to find out the effects of the credit transmission channel weakening factors,transmission channels,and the monetary policy framework to explore the transformation of Chinese.The core content of this paper can be summed up as the following four aspects:First,carding the current situation of the credit channel of monetary policy in China.In recent years,with the rapid development of the securities market,financial institutions have also increased investment in the share of the use of funds,the number of securities had increased,but It is still far below the proportion of credit spending in its use of funds.Regulation of the supply of credit is changed from the original administrative intervention into the market rely on its own strength to decide,the central bank only needs to use the tools of monetary policy guidance,so as to realize the indirect regulation of the commercial bank credit supply.Review the history,China transmission channels of monetary policy has undergone a major change,by which the previous completely belong to the people's Bank of China into central bank indirect regulation on it,through the management of basic money and credit.At the same time,the bank balance sheet business is expanding rapidly,mainly trust loans and entrusted loans rapid growth and expansion of all kinds of asset size of financial products.With the adjustment of monetary policy,the financing methods of enterprises have diversified,and the bank credit funds have gradually shifted from table business to off balance sheet business,the status of credit financing in social financing is lower,and the supply of bank credit is affected by monetary policy.Second,the analysis of the influencing factors of the credit channel of China's monetary policy.The factors that influence the credit channel of monetary policy include the central bank level,the commercial banking level and the enterprise level factors.The central bank uses the three major monetary policy tools: reserve requirement ratio,re-discount rate and open market operation.By adjusting them,the price of money money is affected,at the same time,affecting loan profits,further affecting the supply of money,and finally affecting the real economy.With the diversification of commercial banks' funds,the amount of loans in commercial banks has been changing constantly,and to some extent,it has a limited effect on the conduction of the leading part of commercial banks.The non-performing assets ratio of commercial banks has a direct impact on the amount of credit loans to the market,thereby affecting the efficiency of credit transmission channels.Because of the financing channels for enterprises to diversify the direction of development,in the whole social financing,the RMB and foreign currency loans accounted for a declining trend,coupled with certain financing function of the bank balance sheet business has developed rapidly,the loan to the bank in the form of a substitution effect more obvious.In order to maximize profits,commercial banks tend to lend more to large enterprises.The credit transmission of large enterprises has greatly weakened the transmission effect of bank credit channels,resulting in less and less obvious role of credit channels.Third,the analysis of the efficiency and weakening reasons of the credit transmission channels of Chinese monetary policy.In the empirical analysis,the paper studies the impact of monetary policy,the off balance sheet business of banks,the impact about the level of social direct financing and the supply of bank credit,and the impact about the supply of bank credit on social economic output,investment and consumption.The short-term monetary policy can obviously promote the increase of the amount of bank credit,strengthen the effect of the credit transmission mechanism,and result in that the long-term promoting effect gets slightly weaker.The increase of banks credit supply will spur investment and consumption to forward direction,but the influence of banks credit supply has certain hysteresis quality in time.In the medium and long term,the impact of banks credit on investment and consumption has be gradually diminished.The increase of off-balance-sheet business can promote the supply of credit to raise the level of commercial bank credit supply,the short-term effect obvious and a promotion of credit channel;but this effect cannot endure.The study found that the weakening role of credit transmission channel,mainly due to the weakening of the traditional monetary policy adjustment tool,role deviation,correlation between money supply and credit amount of central bank on the basis of the currency control intensity becomes weak,poor bank deposit and lending in expanding,deepening and other factors of commercial bank operation the market,due to the influence of financial innovation.Fourth,an in-depth analysis of the transition of China monetary policy's framework.Firstly,by selecting the relevant quarter data from 2008 to 2016,empirical analysis to quantity of money and the interest rate target,and study found that the superiority of quantity control compared to the price regulation is gradually reduced.Secondly,the distortion of economic structure is an important reason of the unbalanced allocation of funds in Chinese credit market.Because of distortion of the cost,the investment and capital demand of Chinese credit market are prone to over expansion.Therefore,this paper analyzes the equilibrium of credit market quantity and price under the two sector framework through mathematical deduction.Finally,a model is constructed to explore the six regulatory combinations in the framework of the monetary policy transition,and to analyze the interaction among them.