From The Perspective Of Interest Rate Liberalization Of Bank Risk-taking Behavior

China's interest rate liberalization reform from the beginning of 1996,which has experienced the abolition of the limitation of loan interest rate and the relocation of deposit interest rate ceiling.And in October 24,2015,the People's Bank of China decided to lift the ceiling on deposit interest rate of commercial banks and rural cooperative financial institutions,which symbolizes China's interest rate liberalization reform has been basically completed.The interest rate liberalization means that the central bank liberalizes the restrictions on interest rate,the level of interest rate is determined by financial institutions in accordance with capital supply and demand in the market.The reform of interest rate liberalization may have an impact on the transmission of monetary policy,competition among banks and financial stability.Therefore,the study of bank risk-taking under the perspective of interest rate liberalization,which benefits in the interest rate market background,the relevant regulatory authorities to pay attention to the problem of bank risk-taking,to promote market-oriented interest rate reform,at the same time,can effectively inhibit the excessive accumulation of bank risk.This has an important practical significance to maintain financial stability and promote the sustained growth of China's economy.At present,although the domestic and foreign scholars have carried on the massive research on the bank risk-taking problem and obtained many meaningful results.But the research on the combination of interest rate liberalization and monetary policy is rare.Especially,the influence of interest rate liberalization on risk-taking channel of monetary policy and interest rate liberalization through which channel affecting bank risk-taking is relatively rare.According to this,firstly,this paper discusses the impact of interest rate liberalization on the risk-taking channel of monetary policy through different measurement methods and theoretical models.The measurement methods of interest rate liberalization include indirect measurement,direct measurement and comprehensive measurement,and the indirect measurement conclude direct effect of loan interest rate liberalization and price discipline effect of deposit interest rate liberalization.Secondly,on the basis of theoretical analysis,our paper empirically test the impact of interest rate liberalization on bank risk-taking channel of monetary policy.The results show that:(1)There is a bank-risk taking channel of monetary policy in China,and from the perspective of dimension of interest rate liberalization indirect measure methods,after considering the direct effect of loan interest rate liberalization,the bank's real risk-taking is on the rise.But after considering the price discipline effect of deposit interest rate liberalization,the price discipline effect does not play a role as we expect;(2)From the perspective of the dimension of interest rate liberalization direct measure methods,by introducing the dummy variable approach,the study finds that loan interest rate liberalization will make the impact of monetary policy on banks' real risk-taking become apparent.Further more,by the introduction of interest rate liberalization index method,the study finds that the deepening of the interest rates liberalization will make the risk-taking channel become apparent and the bank's real risk-taking will rise;(3)The impact of the interest rate liberalization on the bank risk-taking channel of monetary policy is different between different types of banks.Thirdly,our paper tries to analyze the interest rate liberalization through which channel,which affects bank risk-taking.And in the context of the continuous improvement of China's regulatory system and the increasing intensity of supervision,our paper tries to explore whether China's banking supervision can effectively reduce the risk of banks.Moreover,our paper divides the banking regulatory measures into three dimensions and compares the regulatory effect of different regulatory measures.The results show that:(1)The interest rate liberalization will not only increase the bank risk through the channel of bank competition,but also increase the risk of bank through other channels.(2)The improvement of bank supervision intensity can effectively reduce the level of bank risk-taking.(3)Different regulatory methods play a different regulatory effect.Compared to on-site inspection(in the course supervision),the release of supervisory documents(ex-ante supervision)and the disciplinary punishment(ex-post supervision)are more effective.And the release of supervisory documents(ex-ante supervision)can effectively restrict the interest rate liberalization through bank competition and other channels to influence the bank risk-taking,and reduce the impact of interest rate liberalization on bank risk-taking.The disciplinary punishment(ex-post supervision)can effectively restrain the interest rate liberalization through the channel of bank competition,but the effect of restrainother channels is not obvious.And one-site inspection(in the course supervision)is not only unable to effectively restrain the interest rate liberalization through the channel of the bank competition,but also can not restrain other channels.