The Impact of Commercial Bank Operation on the Effectiveness of Monetary Policy from the Perspective of Structure

  • Tong Xing
Keywords: Macroeconomic control, Monetary policy, Commercial banks, Structural impact

Abstract

In the process of formulating and implementing monetary policy, the central bank should consider the reaction of commercial banks to monetary policy. This is mainly determined by the characteristics of commercial banks. Because of the particularity of its status and role, commercial banks play an important role in the overall development of the economy. The change of its behavior will affect the effectiveness of monetary policy from different aspects, and then affect the development of social economy. This paper studies the impact of commercial bank operation on the effectiveness of monetary policy from the perspective of structure. Through theoretical analysis, qualitative analysis and empirical analysis, this paper studies its impact on the effectiveness of monetary policy. It uses IS-LM model to qualitatively analyze the credit rationing behavior, and draws the conclusion that different degrees of credit rationing behavior have different effects on monetary policy. Through the construction of the model, it is proved that the existence of internal capital transfer price of commercial banks weakens the effectiveness of monetary policy to a certain extent. At the same time, this paper analyzes the impact of excess reserve, deposit and loan pricing, performance appraisal and financial innovation on monetary policy
Published
2021-05-10
How to Cite
Tong Xing. (2021). The Impact of Commercial Bank Operation on the Effectiveness of Monetary Policy from the Perspective of Structure. Design Engineering, 172 - 185. Retrieved from http://www.thedesignengineering.com/index.php/DE/article/view/1525
Section
Articles