A Study On The Impact Of China 's Monetary Policy On The Commercial Bank' S Risk

The outbreak of the global financial crisis began in 2007, causing theory, practice and the government to attach great importance to the monetary policy and bank risk-taking. Some scholars believe that loose monetary policy in the long-term low interest rates caused the banking system to accumulate excessive risk, which is an important reason of the financial crisis. (Adrian and Shin,2010). Although less affected by the financial crisis in 2008 in China, but there is still a real problem of low interest rate policy, therefore, to reflect on the monetary policy root of the financial crisis, to study effects of the low interest rate policy on bank risk-taking behavior in our country, for our country’s financial stability has important practical significance.In this paper, based on the financial data of 16 listed banks in China and macroeconomic data from 2000 to 2014, using the system GMM dynamic panel estimation method, empirical testing of China’s monetary policy on bank risk taking. The paper is organized as follows: the second part is literature review. The third part is theoretical analysis. The fourth part is the empirical research design. The fifth part is the empirical analysis. The sixth part is conclusion and revelation.The main results of this paper are as follows:(1) China’s monetary policy has a negative influence on bank risk-taking. Loose monetary policy will improve the level of our country commercial bank risk-taking willingness. (2) The effects of monetary policy on risk exists many kinds of inherent conduction mechanism, "the interests of the chase effect", "habit effect "exists in China’s monetary policy transmission process. (3) The market structure of the banking industry is significantly negatively correlated with the bank risk. (4) The impact of monetary policy on the risk of banks is heterogeneous. Bank capital will have an impact on the bank risk taking effect of monetary policy, the banks with different capital adequacy levels have different response to the monetary policy changes. The higher the capital adequacy ratio of the bank, the bank’s ability to resist the impact of monetary policy is higher, the less sensitive to monetary policy changes.