The Expansion Of Financial Product,Liquidity Creation And Systemic Risk Of Commercial Banks

Over the past decade,China's financial products have undergone several regulatory upgrades and innovations.However,it's operation form of "capital pool + rigid payment+ high expected return" has enabled it to rise against the wind in previous supervision.It's annual remaining balance has also expanded from 130 billion in 2008 to nearly 30 trillion in 2017,of which the scale of off-balance-sheet financing is huge.The proportion is as high as 75%.Moreover,the repeated "rigid payment" incidents in banking industry and the behavior of non-performing assets through the "statement" of financial products make us have to think that the expansion of financial products has a considerable impact on the risk of banking industry.As the existence of liquidity conversion and creation,banks can convert the assets lacking liquidity to the liabilities with higher liquidity,so as to provide more liquidity for the society.Correspondingly,the liquidity impact of the whole society will also accumulate in the banking system.In addition,in order to circumvent the increasingly updated regulatory policies,banks have obtained liquidity funds on a large scale outside the balance sheet through loan commitments or similar statements,and then used them to lend or invest,thereby increasing the liquidity of the whole market.Among them,bank financing,as one of the products of financial innovation,has acquired a large amount of funds for banks.But until now,the impact of domestic academia to commercial bank financial products to the systemic risk oriented research is still lack,create a level of liquidity of commercial banks is also less concerned about the influence of the financial products.Therefore this paper will expand the phenomenon and liquidity of commercial bank financial products to create together,first discusses the role of monetary policy,the two effects of systemic risk and change.Further,effects of the 2012 years since the introduction of leverage regulatory policies respectively on financial products and flow created by the commercial banks,and the constraint effect of them to affect the systematic risk.Through 2008-2016 years of the 139 commercial banks data,with two-way fixed effects and System GMM method,empirical analysis,draw the following main conclusion:Firstly,without considering other factors,along with the scale of financial productsof commercial banks accounted for the ratio of assets to enhance the scale of existence,the systemic risk faced by commercial banks will also rose sharply.The rise of broad money M2 growth rate will significantly increase the systemic risk of financial products issued by the cumulative,shows that the current monetary policy to the real economy from the movement of the diversion channel is blocked,at the same time,innovative financial products and financing tools to boost liquidity more and turn to the capital market,capital inflows and holding To promote the financial asset prices continued steady growth in the real economy,but there is lack of financing,the domestic economy is facing downward pressure and high risk industries.Secondly,in the study,when the bank liquidity creation level is low,it's impact on systemic risk is negative,otherwise it is positive.In the face of the low bank capital adequacy regulation constraint,a systemic risk to the interaction regression coefficient of the bank balance sheet subsisting financial products accounting for the size and liquidity creation is significantly positive,but in the face of regulatory capital adequacy constraint is higher,this effect is not significant,and the regression coefficient value is decreased.When the capital adequacy ratio of banks face greater regulatory constraints,it's operating behavior will be more cautious,sheet financial products accounted for the existence of scale of systemic risk is smaller than the effect of increasing the liquidity creation.Thirdly,the increase of the proportion of off-balance-sheet financial products will promote banks to increase liquidity creation,and thus make the systemic risk rise significantly.The larger the scale of banks' assets,the smaller the effect of the proportion of off-balance-sheet financial products on the increase of systemic risk through liquidity creation.That larger banks are less constrained due to expand the size of loans by the high risk behavior will reduce the engaged in financial products through channels of motivation.In addition,the broad money supply growth rate rise is effectively offset the accumulation of bank risk through financial products to create liquidity phenomenon.Fourthly,the increase of bank leverage ratio will lead to the decline of systemic risk faced by banks.The positive impact of the increase of financial products on systemic risk is lower than the negative impact of the increase of bank leverage ratio on systemic risk.That is,with the increase of bank leverage ratio,the impact of financial products on systemic risk will be smaller.This shows that the introduction of leverage regulation can make up the regulatory requirements of the banks to increase their leverage levels,and on the balance sheet financing growth more quickly,the strongerthe ability of bank product innovation has obvious control.Fifth,the leverage ratio of commercial banks and liquidity creation in their impact on systemic risk is also negative,but the interaction of systemic risk has positive impact on both the.In addition,rising bank leverage,will slightly increase the liquidity of financial products and create the cumulative effect of systemic risk.That is a systematic risk control of banks,regulators should not only make the bank leverage in a reasonable range,but also to manage the bank balance sheet financing scale growth rate and capital flows.