Research On The Effects Of Moneytary Policy On Commercial Bank Risk-Taking In China

The 2008 financial crisis has brought a huge impact on the Global economy.In order to avoid the resurgence of the financial crisis,scholars have thoroughly studied the causes and transmission channels of the crisis.The results shows that the outbreak of fnancial crisis is closely related to the high risk-taking behavior of commercial banks under the long-term low interest rate environment.Therefore,scholars re-examine the role of commercial banks in the transmission of monetary policy,and propose a new transmission channel of monetary policy—the bank risk-taking Channel.In this channel,commercial banks will respond to the shocks of monetary policy proactively by adjusting their risk attitudes and willingness.In China's bank-based financial system,the behavior of commercial banks greatly restricts the transmission effect of monetary policy.Loose monetary policy,while promoting economic growth,may stimulate the risk-taking behavior of commercial banks,which in turn leads to a decline in financial stability.Therefore,studying the mechanism and channel that monetary policy affects the risk-taking behaviors of commercial banks is of great significance to the reform of monetary policy and the prevention and control of financial risk in China.This paper firstly clarifies the research content and direction of the article through the combing of the existing research results.Secondly,it uses the principal-agent theory and information asymmetry theory to analyze the premise,mechanism and channel of monetary policy affecting the risk-taking of commercial banks.Then based on the current situation of monetary policy and risk-taking behaivors of commercial bank system,the research hypotheses are put forward,and the unbalanced panel data of 24 China's commercial banks from 2006 to 2017 is taken as research samples for empirical test.In the part of empirical research,the dynamic panel model is first used to test the mechanism and channel of monetary policy affecting the risk-taking of commercial banks.On this basis,the asymmetric influence of monetary policy cycle on the risktaking of commercial banks is further explored.Next,the PVAR model is used to construct the graph of impulse response function to examine the long-term effects of monetary policy on the risk-taking of commercial banks.Through the theoretical analysis and empirical test,research conclusions are as follow:(1)Bank risk-taking channel exists in China.Loose monetary policy encourages the risk-taking behavior of commercial banks,and quantitative monetary policy has a stonger incentive effect on the risk-taking of commercial banks.(2)The risk-taking of commercial banks is subject to the influence of commercial bank's microscopic characteristics and market structure.(3)The incentive effect of the loose monetary policy on risk-taking of commercia banks is stronger than the restraining effect of the austerity monetary policy.(4)The smaller the commercial bank is,the higher the sensitivity of its risk-taking to monetary policy.Concerning the above conclusions,it is suggested that the monetary authorities should take risk-taking of commercial banks into consideration in the process of formulating monetary policy,which helps to improve the effectiveness of monetary policy;it is recommended that the banking supervisory authority can prevent and control the risk of the commercial bank system from the macro level,rather than merely focusing on the microscopic supervisory indicators of each commercial banks.