Research On The Impact Of Monetary Policy On The Risk-Taking Of Commercial Banks From The Perspective Of Market Competition

The financial crisis broke out in the United States in 2008.Many scholars believe that the Fed’s long-term implementation of low interest rate monetary policy stimulated financial institutions to issue a large number of subprime loans,and the high level of risk-taking of financial institutions is the root cause of the crisis.Financial institutions have become one of the core roles of the economic system.Academia began to pay attention to the role of financial institutions in the transmission process of monetary policy and emphasize the initiative of commercial banks in risk management.Since then,the risk bearing channel of monetary policy has become a hot academic issue.In recent years,under the background of in-depth market supply side structural reform,the marketization of China’s banking industry has accelerated,which has promoted the continuous change of market competition pattern.Therefore,an in-depth study of monetary policy measures from the perspective of market competition and their impact on the risk-taking of commercial banks is of great positive significance to dredge the transmission of monetary policy and ensure the healthy development of the banking industry.In the paper,a large number of research results on market competition,monetary policy and bank risk-taking are summarized,and the key directions of the research are clarified.On the basis of analyzing relevant concepts and theories,the main development process of China’s monetary policy and the current situation of commercial bank risk-taking are discussed.Then,taking the data of 37 listed commercial banks in China from 2009 to2020 as a sample,it is proved that monetary policy is negatively correlated with commercial banks’ risk-taking,that is,loose quantitative and price monetary policy will increase commercial banks’ risk-taking,Among them,the price type has a greater impact.The innovation is to bring market competition variables into the research framework,which proves that the intensification of market competition will weaken the impact of monetary policy on bank risk-taking.Finally,four suggestions are put forward based on the model results and research conclusions: from the perspective of monetary authorities,monetary authorities should create a stable policy environment and improve the effectiveness of monetary policy implementation.From the perspective of the central bank and regulators,two suggestions are put forward.Firstly,the central bank and regulators should optimize the market competition structure of the banking industry and maintain the orderly competition order of the banking industry.Secondly,it is necessary to strengthen the construction of the supervision system and guide the healthy development of the banking industry.From the perspective of commercial banks,commercial banks must continuously improve the operation mechanism and improve the level of risk management.