Research Into The Influence Of Financial Disintermediation On Monetary Policy Assets Prices Transmission Channels

In recent years, with the deepen of economic and financial system reformation and thedevelopment of financial market in China, the proportion of direct financing like Stocks, bondsand so on is rising. According to The people’s bank of china’s data, in the structure of socialfinancing scale over the years, the proportion of new renminbi loans fell from91.90%in2012to52.07%in2002, while the proportion of equity and debt financing increased from4.90%to15.91%. Financial Disintermediation has been developed and deepened in China, which bringsgreat influence on Monetary Policy Transmission Mechanism. What’s more, with theincreasingly complex and diverse economic and financial market environment, assets pricefluctuation has become more severe and has greater influence on financial stability and the realeconomy development.Based on research about Financial Disintermediation and assets prices TransmissionMechanism of Monetary Policy at home and abroad, this paper firstly analyzes the definition,measurement, current development situation in China, causes of the Financial Disintermediation.Then this paper discusses how Financial Disintermediation affects the Monetary Policy’s assetsprices transmission mechanism theoretically. At last, based on the previous theoretical analysis,this paper set four VAR model, use quarterly data from2002to2012, and employ the methodslike Unit root test, co-integration test, impulse response function and variance analysis toempirically explore the influence that Financial Disintermediation has on Monetary Policy’sassets prices Transmission Channel in China. Research results show that: the Monetary Policy’sassets prices Transmission Channel exists and is effective, and the development and deepen ofFinancial Disintermediation has positive effects on it, but the influence degree depends on theselection of asset prices and monetary policy intermediary tools.