Monetary Policy,the Off-balance Sheet And Bank Risk-taking

As an important part of macroeconomics,monetary policy transmission mechanism has been an important research field of macroeconomics,and has achieved rich research results,but the traditional research didn't incorporate risk factors into the analysis of transmission mechanism.The US subprime mortgage crisis in 2008 caused a heavy blow to the economies of all countries,resulting in serious and even devastating losses to many financial institutions,and commercial banks and other financial institutions excessive risk behaviors are generally considered the deep-seated causes of the financial crisis.After the crisis,a new theory of monetary policy transmission mechanism was put forward,that is,the bank risk-taking channel theory,long-term low interest rate easing monetary policy,not only caused the asset price bubble,but also to promote the bank to relax the loan standard(subprime),which led to banks and other financial institutions over-expansion of credit,leverage is also rising,and thus bear the risk,resulting in the accumulation of financial system risk,the final outbreak of crisis.On other hand,with the development of financial integration and the increasingly fierce competition in the international banking industry,the financial innovation ability has become an important aspect of the competitiveness of commercial banks.As the banking industry becomes more homogeneous today,how to create new business on the basis of traditional banking business Business model and new products to meet the diverse needs of customers,to create new profit growth point,each of the commercial banks are an urgent need to solve the problem.Compared with the on-balance sheet business,offbalance sheet business has a wide range of forms of flexible,high income,less regulatory features,these features make off-balance sheet business innovation to meet the increasingly diverse needs of customers for the bank profit growth point.Therefore,in recent years,the bank's off-balance sheet business showed a rapid growth trend,the trend of the risk of the banking industry transfer from the on-balance sheet items to the offbalance sheet items is more and more prominent,or bank risk-taking from the on-balance sheet items to the off-balance sheet items the phenomenon.Especially with the advancement of China's interest rate marketization and the tightening of banking supervision,low policy interest rates have prompted banks to increase their risk,but their credit expansion in the form is limited,which leads banks to expand their off-balance sheet business to realize their Risk-taking.Based on the analysis of the theoretical mechanism of the bank's risk-taking channel,this paper chooses the micro-data of 23 commercial banks in China from 2010 to 2015,constructs the GMM estimation model and introduces the agent index which reflects the off-balance sheet business of commercial banks,Whether the monetary policy is to encourage the bank to adjust the off-balance sheet business,and then affect the bank risk,that is,to verify the monetary policy,off-balance sheet business and the relationship between the risk.In this paper,the monetary policy is divided into two types of quantitative and price-based tools,and the introduction of monetary policy stance to study the different types of monetary policy,bank off-balance sheet business impact on whether the impact of bank risk.The empirical results show that:(1)In response to the influence of monetary policy on the bank's operating performance,the bank will adjust its own business,indicating that the bank as a monetary policy recipient,the monetary policy response model is not neutral;(2)off-balance sheet business risk The impact of the offbalance sheet business will reduce the risk of bank risk;(3)the existence of monetary policy through the off-balance sheet business to achieve the bank risk from the on-balance sheet transferred to the off-balance sheet the channel effect.Finally,in view of the empirical conclusion,this paper puts forward some policy suggestions on the corresponding problems in the aspects of monetary policy,off-balance sheet business and bank risk,and the individual characteristics and supervision of banks,and then proposes to reduce the bank risk to expect to strengthen the financial(bank)system stability.