The Analysis On The Impact Of Risk-taking Of Commercial Bank On The Effect Of Monetary Policy In China

After financial crisis in 2008, the bank risk-taking began to receive academic attention, because it not only involved the transmission mechanism of monetary policy, but also had great significance in the study of the relationship between monetary policy and financial stability. Commercial bank, as one mechanism which can optimize the allocation of fund and operate fund independently, plays an important role in the effect of monetary policy. After the global financial crisis, "Basel III", published in 2010, is more concerned about the bank risk-taking and clears influence mechanism on monetary policy transmission process caused by bank risk-taking willing. So dredging transmission channel and mastering financial dynamic change trend will be conducive to further promote the sustainable development of social economy.After the related domestic and foreign literature review was classified and summarized, the article points out the limitations and worthy learning from these articles. Firstly, the article summarizes and defined the bank risk-taking, and clears the scope, then sorts out the theory of monetary policy to provide theoretical groundwork for the practical study below. Secondly, through the bank risk-taking channel and its action mechanism, the article emphasizes on analysis and interpretation of four action mechanisms of bank risk-taking, combined with China’s actual situation, demonstrates the existence of bank risk-taking channel. Then, the article collects sample data and divides into two time periods before and after the financial crisis. Meanwhile, the article builds two time series models VAR model, goes on Impulse Response Test and Variance Decomposition Test to obtain dynamic relationship between variables, then compare and analysis the differences between two models.The article’s results show that before the financial crisis, expansionary monetary policy induces banks to take the risk of large-scale asset investment in the short term; after the financial crisis, expansionary monetary policy in the short term have a poor effect and the bank don’t want to take risks so much. Finally, Based on above analysis and research, the article puts forward suggestions to monetary authorities and commercial Banks from the Monetary Policy Tools, the Central Bank’s independence, the interest rate marketization and financial regulation, and points out the deficiency of this paper.