Research On The Impact Of Monetary Policy On Risk Risk-taking Of Chinese Commercial Banks

In 2008,the financial crisis broke out,which quickly spread to all parts of the world and severely affected the economy of many countries.Therefore,scholars explored the root causes of the crisis.Financial regulators and economists are paying more and more attention to the influence of monetary policy on banks’ risk-taking,and commercial banks have begun to take corresponding measures to deal with this problem.Commercial banks play an important role in China’s financial system and play an important role in maintaining the stable and healthy operation of economy.In the macro-control,a variety of macro-intervention should be carried out by commercial banks as the carrier,so as to achieve the target of regulation.The monetary policy of the central bank may have a significant impact on the investment decisions and business activities of the banks,and thus directly affect the risk management ability of the banking industry.Therefore,studying this area is not only an important subject,but also a task that monetary authorities should take seriously.In this paper,the definition of monetary policy and risk taking of commercial banks is discussed and explained in detail.Monetary policy will be considered from the quantitative and price aspects,in which the statutory deposit reserve ratio is used as the proxy variable of quantitative monetary policy,and the one-year benchmark lending rate is used as the proxy variable of price monetary policy.Then it makes a detailed analysis of practical operation of monetary policy and the development process of risk undertaking of commercial banks.Then the paper discusses the traditional monetary policy transmission channels and the specific mechanism of monetary policy affecting bank risk taking,and uses the systematic GMM method to deeply explore the impact of monetary policy on commercial bank risk taking,so as to better understand the development trend of financial markets and provide reference for the formulation of financial policies.In addition,the adjustment effect of interest rate liberalization in this process is also discussed.After in-depth research and analysis,this paper draws the conclusion: first,loose monetary policy will increase bank’s risk taking,while tight monetary policy will reduce bank’s risk taking.Second,with the deepening of interest rate liberalization,the impact of China’s monetary policy on commercial banks’ risk taking will deepen.Finally,according to the conclusion of this paper,the following suggestions are put forward: First,relevant departments should continue to strengthen the external supervision and management of banks.Second,the central bank should strengthen the monetary policy prior consideration.Third,regulators should implement differentiated supervision measures for different banks.Fourth,commercial banks should strengthen internal regulation.Fifth,the central bank and relevant departments should strengthen the guidance and regulation of interest rates.The innovations of this paper are as follows: first,it explores the regulating effect of interest rate liberalization and studies its influence on the relationship between monetary policy and commercial banks’ risk-taking.Second,in the empirical study,considering the continuity of bank risk taking,this paper adopts the systematic GMM method to effectively eliminate the endogeneity and heteroscedasticity problems.Third,due to the difference in the impact of different monetary policies,quantitative and price-based monetary policies are taken into account in order to more accurately and more in line with the actual situation to explore the impact of monetary policies on commercial banks’ risk taking.These innovative points can be used as reference and inspiration for the research in related fields.