Analysis Of The Impact Of News-driven Monetary Policy Friction On Bank’s Non-performing Loan Ratio

Financial news is an important way of information transmitting monetary policy,in the process of monetary policy transmission,different parts of the financial news reports is different,the content of the financial institutions to the understanding of the monetary policy will be different,policy makers to financial news transmission of monetary policy of"misreading" or "not sure" lead to convey information to the bank’s monetary policy has a deviation,Make bank credit behavior loose or tight,resulting in different provinces,different banks non-performing loan ratio is also different.A high non-performing loan ratio means more loans that the bank may not be able to recover,which means the risk of the bank itself and the possibility of systemic risk.Non-performing loan is a major problem that the banking industry urgently needs to solve.Based on the above background,to study the important impact of monetary policy information friction driven by financial news on non-performing loan ratio,this paper uses LDA method to extract monetary policy information friction index from financial news,and extends DSGE model used by previous researchers.Empirical analysis draws on complex network and spatial econometric methods.To analyze the effect of financial news driven monetary policy information friction on the non-performing loan ratio of commercial banks.Empirical study found that financial news transmission effectiveness of monetary policy in different provincial information transmission,the monetary policy for the selected China’s 31 provincial information between friction index correlation degree is high,the different between provincial forward or reverse the volatility spillover effect,a province of the monetary policy information transmission friction is likely to be affected by the friction of the monetary policy information in other provinces,There is strong ripple spillover effect among the whole network.In addition,monetary policy information friction(IF)driven by financial news has a significant positive spatial spillover effect on non-performing loan ratio(NPL).Specifically,the non-performing loan ratio of the neighboring province has a spatial spillover effect on the non-performing loan ratio of the local province.The monetary policy information friction of the neighboring province will increase the non-performing loan ratio of the domestic banks in the province,and the monetary policy information friction of the neighboring province will reduce the non-performing loan ratio of the domestic banks in the province.The total effect of monetary policy information friction has a significant positive effect on the non-performing loan ratio of banks in the province.In conclusion,the paper proves that the increase of information friction of monetary policy is an obstacle to the transmission of monetary policy,which will reduce the quality of credit behavior of commercial banks and increase the non-performing loan ratio.This paper plays a certain role in understanding the promoting relationship between monetary policy information friction driven by financial news and bank non-performing loan ratio,and provides policy suggestions on how to reduce monetary policy information friction,improve the effectiveness of policy transmission and reduce bank non-performing loan ratio.