Research On The Influence Of Interest Rate Liberalization On Risk-taking Of Commercial Banks In China

Interest rate plays a vital role in the economy and society,and the state often takes it as a means of macroeconomic regulation and control.It is possible that interest rate liberalization can further improve the risk-taking level of commercial banks to a certain extent.However,it can be seen that the impact of interest rate liberalization on commercial banks’ risk-taking is still unclear.What is the specific impact mechanism?This is what this paper is going to study.Taking liberalization of interest rates from 2009 to 2020 as the research object,based on the intermediary effect of macroeconomic environment,and taking monetary policy as the mediator,this paper further expands the research on the deeper internal relationship between risk-taking of commercial banks and liberalization of interest rates.Through empirical analysis with panel data,it is found that:first,the market-oriented performance of interest rate can promote the value of commercial banks,which makes the risk-taking of commercial banks increase significantly.Second,due to the different nature of property rights,bank competition,credit behavior and liberalization level,the relationship between them is heterogeneous.Specifically,non-state-owned commercial banks,high-tech industries,commercial banks with high bank competition and liberalization of interest rates with low liberalization level have a greater effect on commercial banks’ risk-taking.Third,The change of macroeconomic environment and monetary policy play an intermediary and regulatory role respectively.Specifically,interest rate liberalization increases the risk-taking of commercial banks through the improvement of macroeconomic environment,and in the case of monetary tightening,interest rate liberalization plays a greater role in promoting the risk-taking of commercial banks.