The Issuance Of Commercial Banks' Interbank Negotiable Certificates Of Deposit:Determinants And Regulatory Policies' Effectiveness Testing

In the context of deepening the reform of the financial system and interest rate liberalization,the Interbank Certificates of Deposit(NCDs),which was relaunched at the end of 2013,as a financial product in the interbank market,has been growing in market size in recent years.However,in reality,the NCDs business has gradually evolved from a short-term interbank liquidity adjustment tool into an important link in the shadow interbank arbitrage chain,which not only exists the suspicion of "idling of funds",but also hides a large systemic risk.Therefore,it is very necessary to combine the micro characteristics of Banks and the macro environment of monetary policies to discuss the determinants behind the issuance of NCDs and evaluate the effects of relevant regulatory policies.Based on the research background and the review of relevant research,this paper summarizes the development process and current situation of the interbank certificates of deposit market,especially analyzes the development process of shadow banks in China,breaks down the interbank regulatory arbitrage chain,and points out the reasons for the rapid development of NCDs due to the characteristics of "loose supervision","convenient issuance" and "interest margin".Further,taking 236 commercial Banks from 2012 to 2018 as samples,this paper firstly empirically examines the relevant factors affecting the issuance of commercial Banks' NCDs from two aspects of structural monetary policy and bank financing sources,and emphatically tests the difference of the impact of structural monetary policy on different Banks.Secondly,in view of the regulatory policies on the NCDs market issued in 2017,this paper empirically examines the impact of relevant policies on the issuance of NCDs.The results of the study show that in terms of the influencing factors of interbank deposit certificates issuance,the less deposits and traditional interbank liabilities and wealth management products a bank has,the greater NCDs it will issue.And the structured monetary policy has a significant positive impact on the volume of NCDs'insurance especially for small and medium-sized banks with weak financing capacity and banks with low holdings of securities,the impact of structural monetary policy is more significant.Further,the evidence of the series of regulatory policies for NCDs in 2017 shows that:Tighter interbank supervision has significantly reduced the issuance of NCDs by commercial banks,especially for the large and medium-sized banks with assets of more than 500 billion yuan,and this has weakened the substitution relationship between other interbank liabilities and NCDs.