| The report of the 20 th National Congress of the Communist Party of China proposes to "adhere to the focus of economic development on the real economy" and "improve the functions of the capital market and increase the proportion of direct financing".To regulate liquidity more effectively and accurately,the People’s Bank of China has created a series of structural monetary policy tools.Unlike traditional monetary policies,the People’s Bank of China no longer only provides liquidity to banks based on credit when implementing its newly created structural monetary policy but requires commercial banks to use qualified assets as collateral.To this end,the People’s Bank of China established a central bank collateral framework in 2012,which has been continuously expanding with changes in the economic situation.In2015,the People’s Bank of China included AAA grade corporate credit bonds in the central bank’s collateral framework,and in 2018,it further expanded the scope of qualified collateral.The series of operations demonstrate that the central bank’s construction of a collateral framework not only ensures the safety of its own assets,but also aims to reduce the financing costs of the real economy by adjusting the scope of qualified collateral.This article selects credit spread as the proxy variable for corporate financing costs.Based on the quasi-natural experiment of the People’s Bank of China incorporating AAA grade bonds into the scope of qualified collateral in 2015,a double difference model is used to study the effect of the central bank’s collateral framework on corporate financing costs.The moderating effect and heterogeneity of the role of the central bank’s collateral framework are also explored.Research has found that,firstly,the central bank incorporates different credit ratings and types of bonds into the central bank’s collateral framework,reducing the credit spread of related bonds.Second,the monetary policy environment and the scarcity of qualified collateral have a moderating effect on the policy effect of the central bank to expand the scope of qualified collateral.Thirdly,there is heterogeneity in the role of the central bank’s collateral framework in reducing corporate financing costs at the corporate level.When bonds issued by enterprises of different property rights and sizes are included in the scope of qualified collateral,there are differences in the magnitude of credit spread reduction.Fourthly,there is heterogeneity in the role of the central bank’s collateral framework in reducing corporate financing costs at the bond level,and bonds with different collateral situations and issuance terms are affected differently by the central bank’s collateral framework.This article draws the following policy inspiration: firstly,the central bank should adjust the scope of collateral reasonably,effectively reduce the financing costs of related enterprises,guide funds to flow to key and weak links of economic development in a targeted manner,and promote finance to better serve the real economy.Secondly,the central bank should try to avoid flooding when conducting monetary policy operations,achieve precise drip irrigation when resolving conflicts in the economic and financial system,and retain sufficient space for monetary policy operations while achieving policy objectives.Third,when adjusting and optimizing the collateral management framework,the Central Bank needs to expand the scope of qualified collateral reasonably and prudently in combination with the actual situation of China’s bond market development to avoid excessive or insufficient quantity of qualified collateral.Fourthly,when expanding the scope of qualified collateral,the central bank can not only refer to credit ratings,but also examine bond related qualifications from more perspectives such as the nature of enterprise property rights,enterprise asset size,bond guarantee situation,and bond issuance period,to improve the effectiveness of structural monetary policy. |
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