Study On The Credit Channel Of China Monetary Policy Transmission

National monetary policy is conducted to affect the real economythrough the appropriate channels, and the opening of transmission channels will determine the implementation effects of monetary policy. Western economic theory of monetary policy transmission channels are divided into two categories, money channel and credit channel, existing research shows that the current monetary policy of some developed countries in Europe and America is transmissed mainly through monetary channels, but for economic development countries, the credit channel in monetary policy transmission process plays a major role.Since the establishment of the central bank system in1984, China was officially formed in monetary policy of the modern sense, then, the central bank controls the domestic credit scale directly in a very long time, the credit plan was the most important macro-control tool, and reserve and interest rate are only auxiliary tools, so credit policy accounted for the dominant position in China. Since1998, the central bank removed the direct control of loans’ size, and gradually turned to indirect control, then uses the reserve and other monetary policy tools to affect the commercial banks’loan supply, and controls the domestic loan size in order to achieve the final control objectives.With the money market and capital market’s rapidly development, the economic environment of monetary policy is changing, so monetary policy transmission channel is turned to money channel and credit channel from the basic orientation of credit channel. However, because China’s current interest rate is not fully market-oriented, the govement controls the exchange rate and capital market is imperfection, the effect of money channel is relatively weak, which means that the credit channels of monetary policy transmission process still occupy an important position. The study of effects of the credit transmission channel is not only for a comprehensive understanding of China’s credit transmission channel of monetary policy and the current status of the channel, but to have some practical significance to improve the effects of the credit transmission channel.Based on the existing theory and literature review, the article first in the theoretical analysis discusses the existence of credit transmission channels, we get our conclusion that the channel exists, then we make a detailed analysis of the mechanism with the actual situation of our country, at last we study on the factors impacted of the credit transmission channel by the macro and micro levels.When we have a theoretical understanding of the future China’s monetary policy credit transmission channel, the article used a two-stage econometric model to its empirical study. Finally, according to findings of the study, we get the corresponding policy recommendations of credit transmission channel to provide the corresponding reference.Compared with previous studies, this paper has two main features:first, a more systematic analysis of the major factors which impact the credit channel of China’s monetary policy. As China’s economic rapid development, China’s economic environment:and the micro-foundation of monetary policy continues changing, these make China’s monetary policy transmission more complexity. As an extremely important transmission channel, the effect of the credit channel conduct of monetary policy will determine the ultimate effect, therefore, the analysis of factors is important, but there is rarely study on it in the existing research literature. Second, the article combines with the qualitative analysis and quantitative research, it describes statistical analysisa on number of economic variables with the actual situation of credit transmission channel, and use the empirical methods to study the effects of monetary policy transmission channels in order to get accurate understanging of the credit transmission channel and the problems.