The Influence Of Liquidity Supervision And Monetary Policy On Commercial Bank Loan Behavior

Monetary policy is a major means of national macroeconomic regulation and control. In China, the historical development of economy and finance makes monetary policy affect the real economy through the impact of commercial bank loans as the dominant. The outbreak of the international financial crisis in 2008, prompts the domestic and foreign regulatory authorities to cause great concern about commercial bank (important medium of monetary policy effective transmission) liquidity supervision. In 2010, the Basel Committee formally introduced the Basel protocol III, and proposed two important regulatory indicators of liquidity risk management, Liquidity Coverage Ratio and Net Stable Funding Ratio. In 2014, China Banking Regulatory Commission "commercial bank liquidity risk management approach (Trial)" makes detailed provisions on the Liquidity Coverage Ratio. Based on this, this article has the theory and empirical research on whether the change of the liquidity of commercial banks in China will change the original impact of monetary policy on the commercial bank loans, which has important theoretical and practical significance.The main work and innovation is reflected in this article in the following aspects:1.The vast majority of the literature is based on the constraints of the capital adequacy ratio to discuss the inherent mechanism of the impact of monetary policy on the commercial bank loan behavior, however, few literature discusses the theory from the perspective of liquidity constraints. This paper based on liquidity constraints, constructs the theoretical model about the relationship between monetary policy and bank lending behavior and draw theoretical inference. We put the liquidity constraints, the statutory reserve and bank balance sheet constraints into bank profit maximization function through Lagrange multiplier method, to explore liquidity constraints, monetary policy and combined action of monetary policy and liquidity constraints affecting bank lending behavior. Theoretical analysis shows that:there is a negative relationship between monetary policy and bank lending behavior; if liquidity constraints is greater than a threshold value, liquidity constraints and bank lending behavior was a negative relationship, otherwise a positive relationship; the higher liquidity constraints, the higher sensitivity of the bank lending behavior to the monetary policy.2.At present, the literature both here and abroad which empirically analyze whether liquidity regulation changes the influence of monetary policy to Chinese commercial bank loan behavior is relatively rare. On the basis of theoretical analysis, this paper makes an empirical analysis of the system GMM estimation of dynamic panel data model using 5 large state-owned banks,12 national joint-stock banks and 26 city commercial banks from the periods of 2005-2014. The results show:(1) Benchmark interest rate, money supply and statutory deposit reserve ratio have a negative impact on commercial bank loan behavior, and the results are consistent, that is the tightening monetary policy can effectively reduce commercial bank loans;(2)Liquidity buffer has a significant positive impact on commercial bank loans, that is the higher the liquidity level, the bigger the commercial bank loan increment; (3)The higher the liquidity buffer value (liquidity requirements relatively low) of the commercial banks, the lower the sensitivity of the bank lending behavior to the monetary policy, that is the reduction of the tightening monetary policy to the behavior of the loan will be greatly weakened.