Monetary Policy?bank Risk Taking And Stock Market Change

Before the global finance crisis in 2007,many countries and regions adopted loose monetary policies to stimulate the economy,which led to the increasing loan volume of financial institutions,which also increased the risk-taking of banks and caused stock fluctuations.After the outbreak of the financial crisis in 2008,many scholars and experts began to study the influence of monetary policy transmission mechanism on the real economy,and focus on the relationship between monetary policy and bank risk bearing capacity.Through empirical analysis,this paper deeply discusses monetary policy's influence to banks and stock market change.The mechanism is of great theoretical and practical significance for standardizing and developing China's financial market.Through the combination of theoretical analysis and empirical verification.Firstly,according to background,this paper combs the domestic and foreign literatures.On this basis,how the traditional monetary policy transmission mechanism and the bank risk-taking channel of monetary policy giving an influence to the stock market change are analyzed theoretically.Subsequently,using VAR model analysis of monetary policy variables,bank risk-taking variables and stock market variables from 2007 to 2017,it is concluded that the change of monetary policy itself will have a positive impact on stock market change.At the same time,because of the change of monetary policy,the change of bank's risk-taking will also have a positive impact on stock market change,but there is a time lag.At the same time,the representative monetary policy variables and bank risk-taking variables are selected to analysis with GMM model,a channel for bank risk-taking is formed in China,but the transmission effect is not obvious.Bank risk-taking behavior is also affected by the bank's own business.Finally,in the light of the problems encountered in the study and the development of our financial market,the suggestions and prospects of promoting China's monetary policy and bank risk taking are put forward which including establishing and improving the central bank's monitor and supervision mechanism for financial market?continually improving the degree of marketization of interest rate in China needs and making the degree of transmission mechanism of monetary policy much easier and smoother.The innovation point of this paper is combination of theoretical analysis and empirical verification to studying monetary policy?bank risk taking and stock change with VAR impulse impact model and GMM model empirical analysis,This paper comprehensively expounds the same topic existing in China's financial market,and puts forward relevant policy suggestions for the future development of China's financial market.The research content is novel and practical.