The Credit Channel Of Monetary Policy Conduction Effect Of Bank Of China Classification Empirical Research

Chinese monetary policy keeps fine tune accordingly due to the complicated economic and financial environment both locally and abroad in recent years. Therefore, the detailed analysis to transmission channel of Chinese monetary policy will be beneficial to analyze the influence and validity of monetary policy, and thereby can help to enhance the scientificity and predictability of monetary policy and facilitate the policy to become more accurate and flexible.Firstly, this article straightens up economics theory background that monetary policy formed from. Then, it summarizes monetary policy transmission mechanism theory, especially focus on credit transmission mechanism among them. Afterwards, combining with Chinese current economic&financial surroundings and the development circumstance of banking system to examine bank credit channel of credit transmission mechanism under applicable precondition, the conclusion that bank credit channel exists in China with its sound character is drawn. Then, starts from Chinese banking system developing procedures and market structure to analyze "the big four" state-owned commercial banks’(Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC) and Construction Bank of China (BOC)) aggregate market share from several latitudes as total assets, increased assets, loans and deposits, which all account for40%-50%of total Chinese banks and financial institutes. As per pattern of ownership, corporate management structure and historical background,"the big four" are very different from medium-small sized commercial banks. Therefore,"the big four" will be considered as most important part of banking system and be examined independently. And banks will be divided into two categories,"the big four" and rest of medium-small size listed commercial banks, it utilizes multiple linear regression analysis to establish model, optimize model, examine data and compare results with qualitative analysis to reach a conclusion that Chinese monetary policy bank credit channel has discrepant effectiveness under different banks’conductive process. Thus offer theoretical reference to better manipulate policy instruments and enhance monetary policy effectiveness respectively and accordingly. Meanwhile, also give a direction to further improve the transmission mechanism of monetary policy.Conclusions of this article are listed below:1) GDP has high positive correlation with loan outstanding of both "the big four" and medium-small size listed commercial banks. The loan outstanding of both two bank categories changes in negative direction towards to the change of flat interest rate published by PBOC and the influence is pretty little. Change of regulated deposit reserve ratio has big influence to the loan scale of medium-small size listed commercial banks in negative direction, but has unremarkable influence to the loan outstanding of "the big four" banks.2) Tools of published interest rate and regulated deposit reserve ratio are both been utilized into effectiveness through credit supply side. And to "the big four" state-owned commercial banks, published interest rate as policy instruments have certain impact through monetary policy bank credit channel, mainly depanding on mutual action of deposit outstanding limitation and the supplemental policies as window guide. As to medium-small size listed commercial banks, bank credit channel works effectively by these two policy instruments as published interest rate and regulated deposit reserve ratio; it gives influence mainly through the liquidity limitation of medium-small size listed commercial banks.