Monetary Policy On The Operating Performance Of Listed Banks: An Empirical Study

AS the one approach of the macro-regulation, Monetary policy alwayscharacteristics with inverse significant periodicity, has been to provide an authoritativereference for the investment behavior of investors. In recent years, the internationaleconomic situation is complex and changeable, global economic cooperation inpromoting economic development, at the same time, increased the risk of the financialsystem. Since2001China’s accession to the WTO, the economic development step bystep with international practice, the ties between financial institutions, thus the risk indomestic and foreign financial institutions in the conduction is also growing, so alwayspay attention to changes in monetary policy in the domestic economic situation at thesame time, must also cope with the effects of the uncertainty risk on China’s economythe enormity of the task, visible control. The use of monetary policy in our country inrecent years, the reform of the monetary policy tools of innovation and the monetarypolicy regime makes monetary policy to control the macro economy effect obviously,the use of monetary policy has become more and more frequent. Commercial banks as apillar of the national economy industry, its position no ground for blame, but as thetransmission mechanism of monetary policy is the operation object, its business strategyand business objectives are often influenced by, which restricts the development of thebanking industry. Thus, the author carries out an empirical study on the impact onbusiness performance of monetary policy on the commercial bank’s geometry based onreading the relevant literature.Firstly, the monetary policy tools for quantitative monetary policy instruments andprice-based monetary policy tool, the conduction mechanism of different monetarypolicy tools, and theory to the analysis of the use of various tools of monetary policy onthe performance of commercial banks. In addition, this paper also studies the impact ofmoney supply to reverse the performance of commercial banks. Then, this paperchooses the index management an important part of the commercial banks according tocommercial bank’s safety, liquidity and profitability, operating principles, and joined thegrowth index of commercial banks, together constitute the performance evaluationindex system of commercial bank. Since each index is not the same effect on bankperformance, single index comparison analysis to comprehensive evaluation of thebank’s operating performance, therefore, the author uses the principal componentanalysis method to calculate the comprehensive evaluation of performance of banks, isthe dependent variable. The last is the empirical part of this article, in order to facilitate comparative analysis, according to the commercial bank assets will be16listed banks tolarge commercial banks and small and medium commercial banks. In additional, theavailability of data based on, I removed the quantitative monetary policy tools of openmarket operations of the bond trading and repo; based on the consideration of practicalresearch, banks to the central bank to apply for loans benchmark interest rate to changeless, less influences the performance of commercial banks, this paper considers onlyeffect of price monetary policy instruments in the deposit rate on the performance ofcommercial banks. The first part of the empirical research performance tools and moneysupply monetary policy in different types and different types of listed banks correlation,results show that the statutory deposit reserve ratio of commercial banks operatingperformance is negatively related to the impact of large, commercial banks should behigher than the small and medium-sized commercial banks, and this effect at least lagtwo years. There is a positive correlation between price monetary policy instrumentsand large commercial banks operating performance, and negatively related with thesmall and medium-sized commercial banks. Correlation of the level of performance ofmonetary supply and the entire banking industry up to50%.The empirical part secondby establishing multiple regression model found negative effects on quantitativemonetary policy tool performance statutory deposit reserve rate and the commercialbanks, and there exists a certain lag effect policy transmission, and the impact on smalland medium commercial banks than large commercial banks. In addition, the centralissue of the votes of the entire banking industry performance has certain negative effect,but also has a certain lag, lag period in a year; in contrast, influence the price ofmonetary policy to the whole banking business performance is positive, but itstransmission is still lagging behind, and the performance of small and medium-sizedcommercial banks and large commercial banks are relatively large. Money supply as theintermediary target of central bank regulation, have a certain impact on the bankingindustry, the increase in small and medium-sized commercial banks compared to largecommercial banks more benefit from the stock of money.Finally, this paper puts forward the commercial bank should strengthen the macroeconomic forecasting, the central bank monetary quantity should make more use ofopen market operations, and speed up the interest rate liberalization, the commercialbanks to improve business performance policy suggestions in the competition.