A Study On The Effect Of Monetary Policy On China’s Commercial Banks’ Liquidity Creation

Commercial banks are an important indirect financial intermediary in the country,playing an important financial intermediary role in economic society-liquidity creation.While providing liquidity for the economy and society,the amount of liquidity creation also affects the level of economic development of society as a whole.When banks can not cope with liquidity difficulties caused by liabilities decline or asset increase will have liquidity risk,excess liquidity and lack of liquidity in weakening the profitability of commercial banks will also affect the entire economic and social financial resources configuration efficiency and monetary policy transmission effect at the same time.In order to study the effect of monetary policy on the liquidity of China’s commercial banks,this paper has done two aspects.On the one hand,we refer to the method of liquidity measurement proposed by Berger and Bouwman(2009),and revise the classification according to the actual situation of our country.In order to adapt China’s actual situation.Use this method to measure the liquidity creation of 20 different types of commercial banks in China from 2006 to 2015.The study found that:(1)The liquidity creation of commercial banks in China has increased year by year;(2)The liquidity creation of different types of commercial banks is significantly different and the growth rate is different.On the other hand,on the basis of effectively measuring the liquidity creation of commercial banks,this paper uses the dynamic panel model to test the impact of China’s monetary policy on the liquidity creation of commercial banks.The empirical results show that:(1)Monetary policy has different influence on the liquidity creation of various commercial banks.Which has a great impact on the liquidity creation of state-owned commercial banks and has a small impact on the joint-stock commercial banks,the one-year deposit and lending rates have a greater impact on urban commercial banks.(2)Different proxy variables of monetary policy have different effects on the liquidity creation of different type of commercial banks.For the state-owned commercial banks and the joint-stock commercial banks,the liquidity creation is negatively correlated with the statutory deposit reserve ratio,which is positively correlated with M2.The one-year deposit interest rate is positively correlated with the liquidity creation of the joint-stock commercial banks and urban commercial banks.The one-year loan interest rate is positively correlated with the liquidity creation of the state-owned commercial banks,and is negatively correlatedwith the joint-stock commercial banks and the city commercial banks.The statutory deposit reserve ratio is positively correlated with the liquidity creation of the urban commercial banks;the greater deposit and loan interest margin,the smaller liquidity creation of state-owned commercial banks;(3)From the commercial banks themselves,the greater size of assets,the more liquidity creation;the bank risk assets variables are positively correlated with liquidity creation;the core capital adequacy ratio is negatively correlated with the liquidity creation of the state-owned commercial banks and joint-stock commercial banks,and is positively correlated with the liquidity creation of urban commercial banks.