The Effects Of Monetary Policy On The Leverage Of Non-financial Enterprises From The Perspective Of Commercial Credit

At present,the high leverage of non-financial enterprises has aroused widespread concern from the government and academia.As to how to reduce the leverage ratio of non-financial enterprises,the academic circles have given corresponding policy recommendations from different angles.Among them,the monetary policy operations of the central bank have a decisive impact on the leverage of non-financial enterprises.The academia also generally believes that in the current stage,the central bank should implement a tightening monetary policy to cope with the high leverage issues of non-financial corporate sectors.However,this paper finds out the debt structure of China’s non-financial corporate sector recently.In recent years,business credit based on accounts payable has become a major debt in many industries.Therefore,the central bank’s implementation of tight monetary policy can only reduce the borrowing obligations of banks in non-financial enterprises,but it can not reduce the debts caused by commercial credit by non-financial enterprises.Moreover,there is a substitution relationship between commercial credit and bank lending in non-financial enterprises.Especially during the implementation of tight monetary policy,the non-financial enterprise departments tend to use commercial credit instead of bank loans in order to make up for the shortfall.This results in a substantial decline in the size of the debt of non-financial corporate sectors.Therefore,the study of the impact of monetary policy on the leverage of non-financial enterprises in the presence of commercial credit background is of great significance to the implementation of the central bank’s monetary policy.Therefore,this paper constructs a multi department dynamic stochastic general equilibrium model including representative resident departments,production departments and commercial banking departments.As the commercial credit takes place between different enterprises.In order to describe the commercial credit mechanism in the dynamic stochastic general equilibrium model,the production department is divided into the upstream sector,the production department and the downstream sector.The upstream sector,the production sector,and the downstream sector are connected through intermediate inputs.In the process of using intermediate inputs,the enterprise usually pays only part of the inputs,and the remaining funds form the accounts payable and receivable accounts of the enterprise.The successful commercial credit mechanism is introduced into the dynamic stochastic general equilibrium model.After the construction of the model,this paper finds that the central bank’s implementation of tight monetary policy can play a role in reducing the leverage of non-financial enterprises in the short term.However,there will be substitution between commercial credit and bank borrowings.The level of leverage in non-financial enterprises began to rise gradually after a short period of decline,showing a tendency to leverage.Therefore,the central bank’s tightening monetary policy can not fundamentally solve the problem of high leverage in the non-financial enterprises.Further study found that the implementation of tight monetary policy in the background of the central bank,non-financial corporate sector more use of commercial credit will cause the entire production sector funds,will evolve into a new round of the "triangle debt" crisis.As a result,greater use of commercial credit will increase the financial pressure on the enterprise.Moreover,due to the increase in financial pressure,enterprises have to reduce production scale,or to seek higher interest rates of private lending,which will adversely affect the operation of enterprises.In addition,under the dual influence of the tightening monetary policy and the increase of commercial credit scale,the welfare level of the residents will be adversely affected.Therefore,in the context of deleveraging,the government should be cautious about adopting a tight monetary policy.This paper consists of five parts.The first part is the introduction,introduces the background,significance,literature review,concept definition,and the research methods and innovation;the second part analyses the effects of monetary policy on the leverage of the non-financial corporate sector.This part is divided into empirical characteristics fact analysis and transmission mechanism analysis.Among them,the empirical characteristic fact analysis is mainly to sort out the status quo,the changing trend and the main debt structure of the leverage of China’s non-financial corporate sector in recent years.The transmission mechanism analysis mainly introduces the mechanism of the effects of monetary policy on the leverage of non-financial corporate sector;the third part is the main theoretical model of this paper.In this part,we construct a dynamic stochastic general equilibrium model,and analyze the optimal behavior choice of each behavior subject.On this basis,this paper calibrates the parameters involved in the model and the numerical simulation;in the fourth part,this paper makes a detailed analysis on the subsequent impact on the whole economic system by the development of commercial credit,and put forward the related policy suggestion;the sixth part is the main conclusion of this paper.