Study On The Impact Of Tight Monetary Policy On The Commercial Bank Credit Business

With the outbreak of the U.S. subprime mortgage crisis in2007, the U.S. real estate bubble burst which has continued ten years of prosperity, and thus triggered the financial crisis firstly erupted in the United States. The United States is China’s most important trading partner and exporting country, whose recession brought a great impact to China’s export-oriented model of economic growth, and also sounded the alarm to this economic bubble growth sustainability. By end of2007, the central bank released tightening monetary policy, and changed the expansionary monetary policy which had maintained ten years.However, the financial crisis was not limited to the United States, but spread rapidly to the world in2008and triggered a global economic recession, known as the most serious financial crisis since the1929crisis. With the background of global recession, in order to speed up economic recovery, the Chinese government launched a4trillion economic stimulus plan, trying to pull its economy from the global economic slump. But after putting in a lot of money, the Chinese economy has ushered in the Consumer Price Index (CPI) continued to raise, especially real estate prices and food prices, then China began to enter a period of high inflation. In order to avoid the hazards of inflation, the central bank launched a series of tight monetary policy to cure the hot economic regulation. Indirect financing remains dominant during the transition period, the tight monetary policy combined with the downside of the real economy, giving an impact to the banking sustainable development of the ability. Credit business still accounts for more than50percent of sector in China’s banking. In order to avoid the adverse effects of austerity and macroeconomic downturn, and has become a top priority to overcome the impact of economic policies.The direct effect of tightening monetary policy to commercial banks is the contraction of credit declining, as well as quality of service. At the same time, rapid development of China’s capital market and the financial disintermediation of high quality and large enterprise customers, and then the loan of high-quality medium-sized customers rapidly triaging, and finally shake their operating base.With the background of tightening monetary policy, this paper starts to analysis the effect and credit management strategies of commercial banks. The paper is divided into five parts. The first part is introduction, which states the research topics of background and significance, and then elaborated the ideas of the paper and the structure of the text; finally the introduction introduces innovation and a summary of deficiencies. The second chapter is a literature review. In this section, the paper combing research literature between monetary policy and credit management of commercial bank. This part provides the starting point and perspective. The third chapter analyzes the background and content of the current round of tightening monetary policy. In this section, combined with China’s actual situation, analyze the background of the current round of tightening monetary policy. The fourth part analyzes the impact and influence of the current tightening monetary policy on credit management. The fifth part of the study is conclusions and recommendations. With the tightening monetary policy background the paper offers some advice to the commercial banks.In the medium term, there is always the risk of foreign exchange caused by excess liquidity and the real estate bubble may burst in China, which determines the persistent execution of the central bank to keep tight monetary policy. So the commercial banks should plan as early as possible, to avoid the adverse effects of tightening monetary policy to promote the upgrading of the level of profitability of commercial banks under the premise of safety, liquidity, profitability unified.