The Impact Of Structural Monetary Policy On Bank Risk-Taking And The Slow-Release Effect Of Fintech

Since the development stage of people’s "new normal",economic structural contradictions have become increasingly prominent.Under the new environment,the regular aggregate monetary policy fails in the process of guiding social capital flow to weak links and key areas of national economy.The report to the 20 th National Congress of the Communist Party of China clearly proposes to "promote the construction of a new development pattern,implement supply-side structural reform" and "promote the effective improvement of the economy in quality and reasonable growth in quantity".The People’s Bank of China is to carry out the party central committee and the State Council decision deployment,around supporting inclusive finance,green development,scientific and technological innovation in areas such as the coordinated development,gradually built a system of structural monetary policy tools that is suitable to our national condition,such as servicing at inclusive financial tools for long-term support agriculture,for the construction of long-term mechanism with small refinancing and rediscount,There are phased instruments with clear implementation deadlines or exiting arrangements-mortgage supplementary loans,carbon reduction supporting instruments.Structural monetary policy will undoubtedly help to China’s economic structure optimization and the high quality of development.However,due to structural monetary policy tools are mainly to guide our orientation in foreign bank funds to agriculture,rural areas and farmers,small and medium-sized enterprises,the green innovation and other industries needing government support,its influence on bank risk-taking could more clearly than the aggregate tools.Is this actually the case? This is an important question to study.On the other hand,the rapid development of fintech in recent years has significantly improved the risk identification and management capabilities of banks,which may alleviate the aggravating effect of the continuous loose structural monetary policy on bank risk taking to some extent.So is this the case in practice? This is also an important issue to worth studying.In view of this,the paper focuses on the impact of structural monetary policy on bank risk-taking and the possible mitigation effect of fintech on the impact.In terms of theoretical research,the paper aims to analyze how structural monetary policy affects bank risk-taking and the mechanism of fintech’s effect on this effect.The basic ideas are as follows: Structural monetary policy can affect the risk-taking behavior of banks through incoming valuation mechanism,return seeking mechanism,financing cost mechanism and insurance mechanism.The application of fintech can alleviate the problem of information asymmetry of commercial banks,improve customer acquisition and operating costs,optimize the setting of loan pricing,reduce the risk of bankruptcy and improve the risk identification and management ability of commercial banks,thus release the risk-taking of banks under this channel.In terms of empirical research,the operating data of 147 commercial banks in China during the eight years from 2013 to 2020 are taken as the research samples,and the SYS-GMM estimation method is used to empirically test whether the bank risk-taking channel of structural monetary policy really exists in China.The fintech index is further constructed based on text mining technology to test whether fintech plays a moderating role in the process of structural monetary policy affecting bank risks.The research conclusions are as follows:(1)The loose structural monetary policy will improve the level of bank risk-taking,whereas the tight structural monetary policy will reduce the level of bank risk-taking.(2)With the increase of the capital adequacy ratio of banks,the sensitivity of their risk-taking to structural monetary policy operations gradually decreases;Compared with the restraint effect of tight structural monetary policy on bank risk-taking,the stimulus effect of loose policy on bank risk-taking is stronger.(3)The development of fintech can effectively alleviate the aggravating effect of loose structural monetary policy on bank risk-taking.The innovation of the paper is as follows:(1)Based on the reality of structural monetary policy implementation in China,study the existence of our country structural bank risk-taking channel of monetary policy and investigate deeply into the transmission channels in different capital adequacy condition of the Banks and the effects of the difference under different monetary policy cycle,which expand channels of bank risk-taking related research.(2)Based on the development status of the five types of fintech and text mining technology,the text is to construct the bank fintech index and explore the release effect of structural monetary policy on bank risks,which enrich the research on the economic effect of fintech.