New Monetary Policy Tools And Asset-Liability Structure Of Commercial Bank

In order to adapt to the new economic and financial environment,the central bank continued to innovate in monetary policy tools,which enabled the central bank to be more flexible and precise in its operations.With the decline in foreign exchange payments,the liquidity of the banking system is tight.The central bank mainly uses the combination of open market operations and new monetary policy tools to influence the supply of base currencies,and regulates market liquidity,especially MLF.At the same time,due to the slowdown of the macroeconomic growth,the quality of corporate loans declined,the growth of loan business became slow,and business models were constantly innovated to bypass regulatory requirements for interbank business and investment business.This is contrary to the central bank’s monetary policy goals.This paper analyzes the data of 17 listed banks during the 2014Q3-2017Q3 total of 13 quarters,and finds that the implementation of the MLF has a significant impact on the debt structure of large commercial banks,and the proportion of loans to central banks has increased significantly.This is also due to the limited scope of practical operations for the convenience of MLF.However,due to the imperfections and lags in regulatory assessment,banks have great incentives to conduct regulatory arbitrage for their own profitability considerations.With the increase in the proportion of large banks borrowing from the central bank,the proportion of their investment assets has increased significantly,especially bond investment assets.At the same time,the proportion of bond accounts payable in non-deposit liabilities of other banks has increased significantly under the influence of the expansion of MLF.The central bank should further improve the macro-prudential management framework and continue to strengthen the penetration supervision and real-time dynamic supervision.