The Empirical Study Of Commercial Banks On Monetary Policy Transmission

The concept of monetary policy transmission was first proposed by Keynes in 1935, the interest rate monetary policy transmission mechanism, followed by Western economic circles transmission mechanism of monetary policy conducted in-depth study. Monetary policy transmission mechanism, monetary policy and its instruments to study how a variety of financial variables have an effect on the real economy problems. In theory, both belonging to the scope of monetary and financial studies, but also the core of macroeconomics. No matter through what channel of monetary policy to play a role, can not be separated with the microeconomic behavior of economic agents, in particular, is a commercial bank acts as the main financial institutions on aggregate demand and aggregate supply balance in the community has an important impact in the monetary policy transmission mechanism acts as a "transmitter" role. The central bank's monetary policy intentions or objectives, and the corresponding policy instruments are needed by the business activities of financial institutions in order to be reflected. Indirect financing in China-based financing system, commercial banks in monetary policy transmission play an important role in monetary policy transmission assume the role of the main channel. Therefore, it is necessary to present China's commercial banks care about the status of monetary policy transmission in-depth study to identify problems, through a number of columns and effective measures to be improved to enhance the effects of central bank's monetary policy implementation. Of course, the commercial banks effect of monetary policy is multifaceted, there is credit rationing, asset-liability structure, non-performing assets, this paper is divided into four chapters.First of all is the introduction, starting with the concept of monetary policy transmission mechanism and theoretical development and commercial banks in monetary policy transmission in the starting position, indicating the topics of this article's purpose and meaning. Followed by literature review, a more detailed description of the date, the Chinese and foreign scholars in the monetary policy transmission mechanism and the related empirical analysis of the results of research and conducted a simple evaluation of the study of this paper has laid a theoretical basis. Then further illustrates the content of this research, ideas and possible innovations and shortcomings.Chapter I of monetary policy transmission overview of relevant theory and commercial banks in monetary policy transmission in the role of the analysis. The first is the monetary policy transmission channels of monetary and credit channels, the theory expounded, and then focused on analysis of commercial banks in China's monetary policy transmission in the status of China's current monetary policy transmission channels based on credit, in the indirect financing of the financing structure based Under the bank lending channel of monetary policy transmission in our country the main channel, commercial banks in the deposit reserve, loans, rediscount, portfolio investment in four areas affecting the central bank's monetary policy transmission credit channel effects. Finally, the commercial banks in monetary policy transmission channels, such as interest and exchange rates also play an important role.Chapter II is China's commercial banks on monetary policy transmission effect of factors, starting with the credit rationing context, pointed out that credit rationing over the region and the industry focused on the role of monetary policy impeded and weakened the direct effect of monetary policy results; and then in the asset debt structure, asset-liability structure of a single monetary policy impeded the process of intensifying inflationary trend; third in the non-performing assets, not only taking up of bank assets, squeeze out the bank to normal credit space, but also weaken the credit expansion of capacity; fourth in the governance structure, inadequate staffing agencies, but also a serious impediment to the transmission of monetary policy; and finally in the local commercial banks with large state-owned banks do, and developed the development of joint-stock commercial banks are not synchronized, thus affecting the the central bank monetary policy, the ultimate goal.Chapter III of commercial banks in monetary policy transmission in the role of empirical analysis, this paper selected the 1993-2007 years of quarterly data, using vector error correction model (VECM) to establish the method to verify the measurement model for commercial bank credit transfer is China's currency the main channel of policy transmission. First introduced the use of the concept of vector error correction model, and the unit root test, cointegration tests, Granger causality test and other how to do this introduction. And then describes the data selection and processing methods, mainly on the monthly data using simple arithmetic average method to obtain monthly data, and then to eliminate seasonal factors. Finally the unit root test, cointegration test in terms of data analysis and validation.Chapter IV of the previous text of the analysis of commercial banks to improve management, strengthen the monetary policy transmission effects of policy recommendations. The first is from the perfect environment for the conduction of deposit money banks, the interest rate should accelerate market-oriented reforms and foster the social credit environment. Secondly, commercial banks in improving the behavior of the mechanism, to continue to complete the joint-stock reform, optimize the structure and quality of assets and liabilities, while optimizing the behavior of credit rationing. The third in the progress of local commercial banks to improve the financing structure, improve financial efficiency, increase the local commercial banks to support the local economy.Domestic and foreign scholars research on monetary policy transmission has been achieved rich results, formed a relatively complete theoretical system. However, China's commercial banks for the conduction of monetary policy is not enough empirical research. In this paper, the monetary policy transmission mechanism in-depth analysis, based on the expansion of the theoretical applications, combining the characteristics of China's commercial banks, commercial banks deposit reserve, loans, rediscount and other aspects of analysis and seeks to provide for better improve the effectiveness of monetary policy spread to make appropriate policy recommendations. However, as this author is limited, understanding of monetary policy transmission, in depth, there may be some defects. In addition, due to data collection sources and collection capabilities of the limitations, the lack of more recent data support the conclusions therefore may not have the depth, which further amendments and the future research direction.