| The booming China’s securities market forms a multi-level direct financing system with diversified trading varieties and trading venues since the establishment of the Shanghai and Shenzhen Stock Exchanges in 1990,which plays an important role in promoting social financing,optimizing resource allocation efficiency,promoting corporate reform and development and developing brick and mortar economy.In the meantime,the security market,“barometer” of the national economy,provides a reference for the macro regulation of currency.Therefore,it is of theoretical and practical significance to study the impact of the development of the securities market on the credit channel of monetary policy banks.Firstly,this paper constructs the theory framework and proposes the corresponding hypothesis on the basis of the previous studies and the reality of China and the review of paper about the relevant literature on the development of the securities market and monetary policy at home and abroad.Then,the paper builds the corresponding measurement model based on the panel data of Chinese listed banks and companies in 2007-2017 by using system GMM estimation and other methods to empirically verify the hypothesis.The research in this paper shows that the development of the securities market will weaken the transmission effect of the credit channel of the monetary policy bank,and the weakening effect is especially obvious on the small and medium-sized banks.Then,starting from the two necessary links in the bank credit transmission channel,the study found that the development of the securities market will change its debt substitution elasticity and asset substitution flexibility and facilitate the bank to transfer the assets with lower costs and improve its bank liquidity to cope with the shrinking or surplus of bank credit when encountering tight or loose monetary policy for China’s commercial banks.At the same time,it will also promote the banks to develop new financial innovation tools,such as issuing financial bonds to improve the debt structure,and thus weakening the credit channel transmission effect for monetary policy banks.For enterprises,the development of the securities market has alleviated the financing constraints of Chinese enterprises.The development of the securities market is conducive to direct financing,internal liquidity maintaining,risk transferring and the ability to resist risks for enterprises,thereby reducing dependence on bank credit and changing the sensitivity of corporate investment to bank credit supply.Furthermore,it also strengthened the inter-bank competition to prompt banks to develop technologies with lower loans cost for enterprises,thus improving corporate financing constraints.Finally,the following policy implications are given based on the empirical results: First,improve the multi-channel transmission mechanism of monetary policy to cope with the regulation of monetary policy challenges brought by various financial innovations and ensure the effectiveness of monetary policy transmission.The second is to strengthen the construction of commercial banks themselves,optimize the bank’s asset and liability structure,and encourage commercial banks to conduct business and product innovation.The third is to vigorously promote the construction of a multi-level system in the securities market and improve the securities market constraint mechanism in order to solve the problem of corporate financing constraints more effectively caused by information asymmetry. |
