Research On Risk Taking Of China’s Commercial Banks Under The Framework Of Double Pillar Regulation

The global financial crisis that erupted in 2008 has sounded alarms for governments and central banks.Long-term loose monetary policy will intensify the risk-taking of financial institutions such as commercial banks and trigger financial systemic risks.Afterwards,governments and central banks have adjusted their monetary policy adjustment targets and tools,strengthened supervision of financial institutions and prevention of financial risks,and upgraded the original micro-prudential tools to macro-prudential policies,and constantly improved them.In order to prevent financial risks,China has also begun to explore the use of macro-prudential policies very early,and constantly improve the status of macro-prudential policies,gradually explore the use of macro-prudential and monetary policies,and finally propose to build a "double pillar" in 2016.The regulatory framework puts it at the same level as monetary policy.This paper uses the non-equilibrium dynamic panel data of 26 listed commercial banks in China from 2005 to 2017 to establish a GMM generalized moment estimation model.Firstly,it analyzes the impact of China’s monetary policy and macro-prudential policies on bank risk exposure.Then,by constructing the intersection of monetary policy and macro-prudential,the author analyzes the bank’s capital adequacy level,liquidity,provision coverage ratio and the synergy between macro-prudential overall and monetary policy on bank risk exposure.I hope that through the experience of more than ten years,I can provide some reference for the construction of the two-pillar regulation framework that is still in its infancy.The conclusions of this paper include: loose monetary policy will increase the bank’s risk-taking;in the long run,the macro-prudential policy is moderately enhanced,and the bank’s business behavior is more cautious,then the corresponding risk-taking of the bank is lower.However,under certain macroeconomic backgrounds,certain macro-prudential indicators may increase bank risk exposure in the short term;macro-prudential supervision generally weakens the impact of monetary policy on commercial banks’ risk exposure,but sets too strict macro-prudential supervision conditions.It will significantly increase the risk-taking of commercial banks,and the synergy of the two-pillar regulation framework will not be realized.At the end of the paper,from the macro-policy level,it is proposed to give full play to the coordination role of the State Council Financial Stability Development Committee.Monetary policy and macro-prudential policies need to pay more attention to coordination and coordination,and make full use of big data to strengthen economic and financial information sharing.From the micro level of commercial banks,it proposes to improve the bank risk prevention and control system,establish a capital supplement mechanism for commercial banks,give full play to the buffering role of the dynamic provisioning system,and improve liquidity risk supervision and other proposals.