A Study On The Coordinated Development Of Macroprudential Policy And Monetary Policy

The outbreak of the global financial crisis in 2008 made central banks realize that the financial regulatory framework based on micro prudential policy and monetary policy can not effectively prevent systemic financial risks.In order to better cope with the procyclicality of financial institutions,many countries began to build macroprudential policy framework after the crisis.From the perspective of China’s situation,the stable external environment and the development of Internet technology provide conditions for innovation in the financial field.However,the rapid development of the financial market not only improves the efficiency of resource allocation,but also pushes up the leverage.Once the economic downturn,nonperforming assets will enter the outbreak period of risk concentration.Therefore,China has started to build up the financial sector earlier We will continue to improve the system and tools of macroprudential policies.However,at present,the two pillar framework of "macroprudential policy + monetary policy" is still in the initial stage of exploration.Therefore,the effect of the joint use of monetary policy and macro Prudential policy,and how to coordinate the two policies to achieve better financial stability have become a significant issue.Based on this background,this paper first analyzes the necessity of implementing macroprudential policy and the necessity and feasibility of coordination between monetary policy and macro Prudential policy.Then,based on China’s macro-economic data in 2010-2018 and the panel data of 16 listed banks,a multiple linear regression model is constructed to test the effectiveness of the combination of monetary policy and macroprudential policy in regulating the risk-taking and credit expansion of commercial banks.The empirical results show that the effect of macroprudential policy on financial risk control is significant,while the effect of monetary policy on financial risk control is not significant.When the macroprudential policy and monetary policy are used together,the effect of the two policies on bank risk-taking and credit expansion is consistent and contradictory.Under different policy combinations,monetary policy and macro prudential policy can work together to resist systematic risks,there are also "policy offset" and "policy overshoot".This shows that the coordination between them is very complex.In order to make better suggestions on the coordination between the two,this paper reviews the financial reform of other countries,summarizes the international experience of the coordination of monetary policy and macroprudential policy in these countries and regions,and makes a detailed analysis of the construction of the two pillar regulatory framework of China’s monetary policy and macroprudential policy.Finally,on the basis of the empirical conclusion,drawing on the experience of other countries’ policy coordination,and in line with the actual situation of our country,the paper puts forward legislation to strengthen the central position of the people’s Bank of China’s coordination and supervision,establish an effective accountability mechanism,establish a "two horizontal and one vertical" information communication mechanism between departments,establish a financial supervision information sharing platform,and scientifically design the "two pillar" framework on the theoretical basis and so on.