| The theory of monetary policy transmission mechanism is one of the core issues of monetary policy theories. The debate that how the monetary policy transmission mechanism may transmit and affect the economic is mainly in through the credit channel or monetary channels. The differences between the view of monetary and credit lie in that the former describing the monetary transmission mechanism, mainly considerates the bank balance sheet on the liability side (deposits), while the latter mainly considerates the bank balance sheet on the asset side (loans). The monetary view of monetary policy transmission mechanism is that monetary policy affects bank loans, thus affecte the investment, lead to changes in output.With the development of Information Economics, the credit view had been widespread in monetary theory academic circles, in particular, the theory of asymmetric information was put forward. It believed that financial markets are not perfect, and there were a large number of financial frictions and defects. Banks played an integral role in monetary policy transmission process and there could be obvious advantages on addressing the issue of information asymmetries and other frictions in the financial markets. Accordingly, holders of the credit view put forward the monetary policy transmission mechanism theory of the bank credit channel. Bank credit channel for monetary policy put emphasises on how the banks to borrowers by influencing the quantity and price affect the real economy (Bernanke and Gertler,1995). The core of the theory is that the changes in loan supply of banks and other financial institutions, however, Western scholars for monetary policy have debates on whether the monetary policy can influence and the extent to the supply of bank loans or not.For our part, the financial markets is not high degree of perfection and markets exist shortcomings, the financial friction and so on,which provided the channel of bank credit in China the existence and effectiveness of the soil. People’sBank of China in 1998 lifted restrictions on the amount of control over loan. Our country mainly based on indirect financing of China’s financial system.The status of bank credit is important, so the banks and their asset structure in monetary policy transmission played a vital role. Based on this background, the paper studies whether monetary policy can affect the lending through the banking channel for the supply of credit, and commercial banks in monetary policy transmission how the "bank credit channel" to play its intermediary role. This paper based on the "bank credit channel" of the bank loan providers, namely, the perspective of commercial banks, from the two aspects analyzed separately.The one aspect is to examine how monetary policy through the intermediary role of commercial banks affect the lending supply; The other aspect is to examine that the commercial banks with different internal characteristics whether their loan supply to the monetary policy exist differences in sensitivity. We will group factors which affect bank loan supply into two categories:One is the bank’s internal characteristics factors, namely, its own balance sheet,so in the framework of this research they include asset size, liquidity, capital adequacy level; the other is Bank’s external factors which in the framework of this paper is namely monetary policy.Monetary policy does not directly impact on the supply of loans, but effec through the bank’s internal characteristics factors.This study based on commercial bank’s balance sheets, viewed the asset size, liquidity, capital adequacy level as an important indicator. and in the theories and assumptions related research proposed the research framework and theoretical analysis model. On this basis, with China’s 14 commercial banks in 1998-2008 period panel data to build a dynamic unobserved effects model to study how monetary policy affects the supply of commercial bank loans,besides, with different characteristics of commercial banks whether have different response to monetary policy or not. This paper used GMM two-step of dynamic panel data to study empirical analysis. By the empirical results:asset size, liquidity, level of capital adequacy of these three internal characteristics factors will affect the bank’s loan supply, and there was a significant positive correlation; monetary policy through the asset size and capital adequacy factors influences the level of of credit supply, and with different levels of asset size and capital adequacy, banks reflectdifferently in monetary policy, the impact of the effectiveness of different degrees.This paper totally includes six chapters and each chapter as follows:The first chapter is an introduction that based on the monetary policy transmission channels of bank credit to study the monetary policy and the supply of bank lending.Moreover,it will study the relationship between bank loans in supply and bank financial intermediaries, and further analysis of how to conduct monetary policy transmission and the intermediation role of commercial banks and the characteristics and significance of this research.The second chapter is a literature review on the issues to be studied. First of all, describe the theory of monetary policy transmission mechanism for the source of the true sense; sum up the classical theory of monetary policy transmission mechanismand the bank credit channel of monetary policy in the theoretical basis. Second,do summary analysis of bank credit channel model and its development. Again, the study on the status of bank credit channel, as well as domestic and foreign literature are summarized. Finally, put forward an entry point of this study.The third chapter is the theoretical basis. From the bank credit channel for the three efficient conditions in China, asymmetric information theory and the intermediary role of financial institutions in the banking these three aspects, this paper concluded that China Monetary policy can impact on bank credit channel for the supply of bank credit.The fourth chapter is to build the framework and theoretical model. First, propose research framework of this paper and argument from two aspects. Second, analyze the impact of bank credit supply factors by the first aspect. Finally, analyze when internal characteristics of commercial banks are not the same time, the monetary authorities implement monetary policy in the supply of bank credit, as well as the degree of influence is different from the second aspect.The fifth Chapter is the empirical analysis and results explaination. Basing on the empirical model this chapter proposes the theoretical model.This model is estimated in use of econometric methods, then explain empirical results.The sixth chapter is the conclusion of this paper. Basing on conclusions of empirical analysis,it put forward the corresponding policy recommendations, and propose the inadequacies of this study and follow-up research.Overall, this paper is characterized by: The empirical research has contributed to expand bank credit channel literature discussed.This article will also be different from some literatures studying bank loans. This paper will distinguish loans supply and demand for bank, focus on bank loans suppliers-commercial banks and their intermediary role.The conclusion of this study can not provide a more rational monetary policy advice for the monetary authorities, but also the empirical evidence to accelerate the current financial sector reform.There are some improvements in this paper.This paper is only study the monetary policy transmission channels of bank credit from the perspective of the supply of bank loans,have no combination of demand for bank loans. Studies could be linked bank loan supply and demand to make more comprehensive research framework in the follow-up. Then there is the issue of the availability of data.There are only 14 sample banks in this paper, in the follow-up study, it can be searched and seized more comprehensive data, add city commercial banks, rural commercial banks, rural co-operatives to making the sample more representative. |
