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| Effects of Monetary Policy on Bank Risk-taking Behavior in China——Based on the Perspective of Heterogeneity |
| FENG Zongxian,CHEN Weiping |
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Abstract Lots of attention has been paid to whether monetary policy can influence banking system stability in the aftermath of the global financial crisis. By using a dynamic panel data model, this paper analyzes how monetary policy affect bank risk taking based on the perspective of heterogeneity. The results show that the impact of monetary policy variables on bank’s risk preference exhibits strong time lag from 2003 to 2011; high lending rate would inhibit bank risk; but the increasing of money supply would stimulate greater risk-taking. The distributional effects of monetary policy on bank risk-taking due to individual bank characteristics revealed that the impact of monetary policy on risk assets was diminished for banks with higher capital adequacy. Therefore, how to strengthen the leading role of the central bank in macro prudential management and construct coordination mechanism between the countercyclical monetary policy and capital regulation becomes a key issue of the Chinese regulatory authorities in the post-financial crisis era.
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Received: 22 February 2013
Published: 15 September 2013
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Corresponding Authors:
CHEN Weiping
E-mail: chenweiping0327@163.com
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2013, Vol. 
浙公网安备 33011802000512号