The Effect Of Credit Rationing In Transition Economy To The Validity Of Monetary Policy In China

Credit Rationing, as a phenomenon existing in society generally, is an imperfect phenomenon which could happen in any country on the condition that there is asymmetric information in credit market in that country. Credit Rationing is a problem drawing the researchers'attention abroad since in 1950', however, until some outstanding economists such as Stiglitz and Weiss introduced incomplete information into the research for credit rationing in 1970'and1980',the microeconomic mechanism of credit rationing was really illustrated, and strict credit rationing theory began to establish.The effect of monetary policy relates to whether the monetary transmission is smooth directly.Commercial banks play a very important role in the transmission mechanism in the indirect finance market.As we know, commercial banks in China are main contributor in finance market, so the effective of monetary policy depends on the reaction of commercial banks to the central bank's policy Intension.Since credit channel is the main monetary transmission channel in our country, the credit rationing of commercial banks will influence money supply of central bank naturally and influence the results of monetary policy finally.In this paper, the effect of credit rationing to MMPT in China has been discussed on the basis of the western monetary transmission theory, Chinese present condition and data analysis during 1985to 1993.the conclusion shows that non-equilibrium credit rationing is the main feature of commercial banks' behavior, but from 1998, equilibrium credit rationing is building up. This paper is aimed to analyze the how the effectiveness of monetary policy is influenced by non-equilibrium and equilibrium credit rationing, and propose advice to solve the problem medium-sized enterprises credit rationing and strengthen the effectiveness of monetary policy.The paper firstly elaborates the background and meaning of the research in the influence of credit rationing on the efficiency of monetary policy made by central bank.in chapter 1. In the shadow of the financial crisis, studying on the influence of credit rationing on the efficiency of monetary policy has special significance. It is not just helpful for understanding the exist problems on the credit market from micro view, but also for improving the macro financing structure and the monetary policies. Then we introduces the contemporary bank credit theory and credit rationing theory。In chapter 2, the thesis described the behavioral characteristics of banking credit rationing including the financing small medium-sized enterprises difficulties, the high level of the concentration of loaning and the compatibility of local inflation of credit and credit crunch, then finds out the reason of credit rationing, including interest rate control, the policy information, the environment of law and the commercial bank management system.In chapter 3, we analyze the importance of credit channel in the monetary transmission channel in our country in the transition period, then probe into the mechanism of credit rationing influences the efficiency of monetary policy in different macroeconomic conditions, taking the domestic and international theories about credit rationing as foundation.On the basis of Ex-three chapters, the passage tries to use numerical economic model to demonstrate that credit channel is the main monetary transmission channel in our country and the effect of this variety on extent of credit rationing to the monetary policy during1998-2009.The last chapter induces the conclusions getting from the analysis in the above, and proposes some suggestions to the problems.The study aim of this paper is to help analyze the mechanism of credit rationing influences the efficiency of monetary policy in different macroeconomic conditions and make helpful advice for deepening the reform of financial structure and advancing the effect of our monetary policy transmission. Because of lacking reasonable indication of measuring the extent of credit rationing, this paper can't offer the reasonable extent of credit rationing. Late comers could continue to research according this path.