China's Monetary Policy Transmission Effects On Commercial Bank Risk-taking

The subprime mortgage crisis originated in the United States has made many financial institutions including lehman brothers collapse. The destructive force of the crisis, spread to a wide range of people are unpredictable, many scholars began to study the cause of the crisis.The role of the commercial Banks in this crisis has become a hot topic in the theoretical circle.Though, China's economy is affected by the sub prime crisis is relatively small, but it is undeniable that the risk of Chinese commercial banks behavior also affects the stability of the economy in our country. The research in our country monetary policy conduction and the relationship between the risk of commercial Banks has become the hot issue of theoretical research in our country. With the emergence of new normal economy in our country, private bank officially opened, interest rate marketization process of further deepening and the risk of Chinese commercial Banks behavior also has new characteristics; especially the deposit insurance regulations that will take effect on May 1 laid the foundation guarantee for the future of our country commercial bank bankruptcy mechanism.In order to study the monetary policy transmission influence on our country commercial bank risk-taking behavior, and the characteristics of the conduction process in China. This article first theoretically combed the bank risk-taking channel of monetary policy transmission mechanism in order to explain the process of monetary policy transmission effects on commercial bank risk-taking. On this basis, considering the degree of marketization of interest rate in our country, this article will degree of bank competition characteristic indexes into empirical model, by utilizing the method of system GMM confirmed that the monetary policy in our country the existence of risk bearing channels. At the same time, based on the theoretical of monetary policy stance change impact on bank risk-taking in the process of China's monetary policy transmission analysis,use the taylor rule interest rate as the monetary policy stance of alternative indicators to find the changes of China's monetary policy stance for the influence of the risk of commercial banks, the results show that China's monetary policy stance change will affect the risk of commercial banks behavior. The study confirm that the monetary policy stance for commercial bank's risk behavior exist. Monetary policy is not neutral, producing certain effect to financial stability by risk bearing channels.Under the new situation, China's central bank should pay more attention to monetary policy and Macro-prudential regulation policy synergy to form effective risk firewall between the field of financial institutions and financial market. Set up the mechanism of our country commercial bank countercyclical capital buffer.Relevant departments shall be issued to the policies and measures as soon as possible to promote the conscience of banking competition,to improve the market access and to perfect exit mechanism of commercial banks. After the subprime crisis the market is more complex, Our country commercial bank need to further improve the risk control methods in our country, improve the ability to resist risk impact.