The Implementation of Monetary Policy in China: The Interbank Market and Bank Lending
Qianying Chen () and
Stefan Gerlach ()
Additional contact information
Hongyi Chen: Hong Kong Institute for Monetary Research
No 262011, Working Papers from Hong Kong Institute for Monetary Research
We analyze the impact of monetary policy instruments on interbank lending rates and retail bank lending in China using an extended version of the model of Porter and Xu (2009). Unlike the central banks of advanced economies, the People's Bank of China uses changes in the required reserve ratios and open market operations to influence liquidity in money markets and adjusts the regulated deposit and lending rates and loan targets to intervene in the retail deposit and lending market. These interventions prevent the interbank lending rate from signalling monetary policy stance and transmitting the effect of policy to the growth of bank loans.
Keywords: Monetary Policy Implementation; Regulated Retail Interest Rates; Transmission Mechanism; Window Guidance; Bank Loans; China (search for similar items in EconPapers)
JEL-codes: E42 E52 E58 (search for similar items in EconPapers)
Pages: 38 pages
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac, nep-mon and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (32) Track citations by RSS feed
Downloads: (external link)
http://www.hkimr.org/uploads/publication/54/ub_ful ... o-26_2011-final-.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.hkimr.org/uploads/publication/54/ub_full_0_2_292_wp-no-26_2011-final-.pdf [302 Redirect]--> https://www.aof.org.hk/research/HKIMR/uploads/publication/54/ub_full_0_2_292_wp-no-26_2011-final-.pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:hkm:wpaper:262011
Access Statistics for this paper
More papers in Working Papers from Hong Kong Institute for Monetary Research Contact information at EDIRC.
Bibliographic data for series maintained by HKIMR ().