Research On The Impact Of Double-pillar Regulation And Control Policy On The Risk-Taking Of Commercial Banks

The traditional monetary policy is difficult to ensure financial stability at the same time with the outbreak of the financial crisis.Macroprudential supervision has been proposed and formed a double-pillar regulation and control policy.Commercial banks,an important part of the financial system,,are the main implementation object of the double-pillar policy.This paper researches the impact of monetary policy and macroprudential supervision on the risktaking channels of commercial banks.At the same time,it integrates monetary policy and macro prudential policy into the double-pillar framework,studies the impact of bank risktaking,and explores the effectiveness of the implementation of the double-pillar framework.In addition,the paper will also focus on the impact of bank-level heterogeneity.It is of great significance for regulators to continue to promote the implementation of the double-pillar framework and banks to deal with excessive risk-taking.This paper combines theoretical analysis with empirical analysis.In the theoretical analysis part,with the help of the bank risk-taking channel theory of monetary policy,this paper points out the existence of bank risk-taking under the loose monetary policy;Referring to the DLM model,it is pointed out that the macroprudential supervision represented by the leverage supervision plays a regulatory role in the risk-taking channel of monetary policy.The empirical analysis part takes the data of 23 commercial banks from 2008 to 2020 as samples to construct an empirical model for regression analysis.The results show that the bank risk-taking channel of monetary policy has empirical data support,and loose monetary policy will lead to the enhancement of bank risk appetite,resulting in excessive bank risktaking.The implementation of macro Prudential policy supervision is effective.The regulatory pressure exerted by macroprudential supervision on banks will reduce banks’preference for risk assets.In addition,this paper constructs the intersection term of macro Prudential and monetary policy and adds it to the benchmark model.The regression results show that the strengthening of macroprudential supervision can effectively curb the excessive risk-taking of banks stimulated by loose monetary policies such as interest rate cuts,and the effectiveness of the implementation of the double-pillar policy has been confirmed.At the same time,this paper uses the bank bankruptcy probability as an alternative variable to test its robustness.The robustness test results are consistent with the above conclusions,which ensures the reliability of this conclusion.In addition,this paper also carries out grouping regression based on the median capital adequacy ratio.The results show that the bank risk-taking channel of monetary policy is more significant in the low capital adequacy ratio group,and the effect of double pillar policy is more effective in the low capital adequacy ratio group.Finally,this paper puts forward targeted suggestions according to the conclusions.