An Empirical Study On The Influence Of Differential Deposit Reserve Policy On Credit Scale Of Commercial Banks

The People’s Bank of China adopted the Policy of Differential Deposit Reserve Rate in April 2004.The implement of the policy has achieved positive results during the period.For example,it has rationally adjusted the market currency and liquidity.The implement of the Differential Deposit Reserve Rate Policy is intended to adjust the monetary amount through institutional constraints,which can control the liquidity of money.It not only effectively adjusts the capital supply of state-owned commercial banks in the financial market,but also makes the joint-stock commercial banks,urban commercial banks and rural commercial bank get greater policy preferences.Based on the theory of monetary policy transmission mechanism,banking behavior theory and other theories,this paper makes an in-depth analysis on the influence of differential deposit reserve on credit.Then it analyzes the transmission effect respectively from liquidity,profitability,security and macroeconomic factors.It is found that the Differential Deposit Reserve Rate Policy will have an effective impact on the credit of commercial banks.At the same time,this paper further briefly analyzes the impact of other monetary policies on bank credit to ensure the integrity of the contentThe semi-annual data of forty-five commercial banks from June 2008 to 2019 and the System GMM Model are used to carry out the regression.The sample is divided into three groups:large commercial banks,small and medium-sized commercial banks and all samples.Therefore,the Policy of Differential Deposit Reserve Rate is effective to infect the credit of bank.Also,it can be concluded that the development of small and medium-sized commercial banks is more favorable by the policy.At the same time,it can be concluded that the time lag of deposit reserve policy on bank credit is about 6 months after further empirical regression.Finally,this paper concludes that the implementation of Differential Deposit Reserve Rate Policy is effective,and the effect on small and medium-sized commercial banks is more significant.In order to provide some reference for the central bank and the commercial banks,this paper puts forward corresponding suggestions for the central bank and the commercial banks respectively.For example,the central bank needs to improve the maneuverability of the policy,and the commercial banks should sound internal control.