The Impact Of Financial Disintermediation On The Credit Transmission Mechanism Of Monetary Policy

The effect of monetary policy is directly related to China ’ s economic development,has been widely concerned by the academic community.Its role is directly restricted by the transmission mechanism of monetary policy.In China,compared with the developed countries,the development of financial market is not perfect,and the transmission mechanism of interest rate is far less than the credit transmission mechanism.Therefore,it is still of great value to study the transmission effect of the credit transmission mechanism of monetary policy.At present,with the continuous progress of China’s reform and opening up,financial disintermediation has become a factor that can not be ignored in China ’ s economy,financial disintermediation will affect the effect of credit transmission mechanism of monetary policy.Therefore,whether the current monetary policy credit transmission mechanism is still smooth and whether financial disintermediation will weaken it has become an important research issue in this paper.This paper first defines the definition of financial disintermediation and monetary policy credit transmission mechanism,and combs its related theories.Then the paper makes a theoretical analysis of the effect of financial disintermediation on the transmission mechanism of monetary policy credit,and concludes that financial disintermediation will weaken the effectiveness of the two links.Finally,we use the monthly data from January to 2021 in 2002 to construct a VAR model to empirically verify the impact of financial disintermediation on the transmission mechanism of monetary policy and credit.On the basis of theoretical analysis and empirical results,this paper draws the following conclusions:（1）the credit transmission mechanism of monetary policy occupies an important position in China’s monetary control system;（2）the credit transmission mechanism of monetary policy in China is generally unobstructed,（3）financial disintermediation can weaken the effectiveness of monetary policy in both the transmission channels of credit.In order to reduce the impact of financial disintermediation on the credit transmission mechanism,according to the conclusions of this paper,the following suggestions are put forward:（1）improving the effectiveness of monetary policy transmission mechanism: attaching importance to the effectiveness of monetary policy credit transmission mechanism and improving the effectiveness of other monetary policy transmission mechanisms,so that multiple transmission mechanisms work together;To promote the effectiveness of the transmission mechanism of monetary policy;（2）to strengthen the supervision of financial disintermediation and maintain the security and stability of financial development.