Research On Bank Risk-taking Channel Of Monetary Policy In China

The outbreak of the global financial crisis in 2008 made countries realize that the turbulence in the financial system will have a great impact on the entire country,and countries around the world have therefore started to think and study the causes of the crisis.Before the crisis broke out,some countries and regions implemented long-term loose monetary policies,mainly sustained low interest rates,which led to a sudden increase in the amount of loans of financial institutions,followed by the continuous accumulation of commercial bank loan risks.At the same time,some high-risk financial derivatives also expanded at this stage.In addition,the oversight of regulatory agencies resulted in a large number of financial institutions unable to take risks until bankruptcy,which eventually triggered global economic turmoil.This paper selects data from 36 commercial banks in C hina during the period of 2007-2016,uses the dynamic panel estimation method of GMM to examine the existence of risk-taking channels for China's monetary policy,and then verifies the existence of heterogeneity.Based on this analysis,macroeconomic environmental differences are added to analyze and verify the differences in the impact of different macroeconomic environments on monetary policy.Based on the review of previous literature classifications,we further studied the changes in banks' risk-taking behavior under different macro-environments and added multiple indicators representing macro-environmental differences to further ana lyze changes in bank risk levels.The main conclusions of this article are:Monetary policy has a significant negative impact on Bank risk-taking.Loose monetary policy will cause the bank's non-performing loan ratio to rise,and the Z value will drop.From the micro level,the larger the scale of commercial banks,the higher the capital adequacy ratio and the better the profitability,the lower the non-performing loan ratio,and the higher the Z value,that is,the lower the level of the bank's risk-taking.From the macro perspective,macro-environmental indicators,which are represented by gross national product GDP,economic viability level VIR,and total growth rate of import and export trade,will weaken the bank's risk-taking level.The macro-environmental indicators,which are represented by the consumer price index(CPI)and the growth in the total retail sales of consumer goods,will increase the level of the bank's risk-taking.Moreover,after a number of macro variables are added,the impact coefficient of monetary policy is generally reduced.It can be understood that the impact of monetary policy on banks risk-taking is weakened.