Research On The Asymmetric Impact Of Monetary Policy To Commercial Bank’s Risk Taking

Since the financial crisis around the world, scholars and the financial regulators take more attention on the question of commercial bank risk and credit quality. Recently, monetary policies have played important roles in macroeconomic controlling all over the world. Some scholars academia attribute the financial crisis to USA taking the low interest rate easing monetary policy for a long time. This leads to the birth of bank risk-taking channel theory which has become the center of the scholars discuss.In our country, whether the monetary policy impact on commercial bank risk level, how to impact are to be discussed.This is directly related to the steady development of financial industry and even the real economy as a whole.This paper summarized the theory of commercial bank risk-taking and monetary policy asymmetry theory firstly.lt shows the effect of monetary policy on commercial bank risk-taking comprehensively. Secondly,we do the tests about bank risk-taking channel theory with the GMM method, based on the panel data of the Chinese listed commercial banks from 2005 to 2013.And for the further study, we build a VAR model to test the asymmetry effect of monetary policy. The results show that the theory is almost right in china bank market, and mainly effect through the valuation and the profit mechanism, the competitive mechanism effect is not obvious, which is related to their own characteristics in China’s banking industry.Macroeconomic situation, the banking industry competition situation and the Banks themselves all have impact on Banks’ risk.The effect of monetary policy is asymmetry.Expansion monetary policy effect obviously and strong timeliness than constrictive monetary policy.Banking competition and bank capital levels will also affect the asymmetry in different aspects.From this conclusion,the monetary authorities, regulatory authorities and commercial Banks should pay more attention to the impact of the monetary policy on banks’ risk. Using monetary policy tool prudently and developing bank risk management.Three parties work together to implement monetary policy of balance between regulation and financial stability, promoting financial steady and orderly development.