Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212836
Authors: 
Fungáčová, Zuzana
Nuutilainen, Riikka
Weill, Laurent
Year of Publication: 
2015
Series/Report no.: 
BOFIT Discussion Papers No. 26/2015
Abstract: 
This paper examines how reserve requirements influence the transmission of monetary policy through the bank lending channel in China while also taking into account the role of bank ownership. The implementation of Chinese monetary policy is characterized by the reliance on the reserve requirements as a regular policy tool with frequent adjustments. Using a large dataset of 170 Chinese banks for the period 2004–2013, we analyze the reaction of loan supply to changes in reserve requirements. We find no evidence of the bank lending channel through the use of reserve requirements. We observe, nonetheless, that changes in reserve requirements influence loan growth of banks. The same findings hold true for other monetary policy instruments. Further, we show that the bank ownership format influences transmission of monetary policy.
JEL: 
E52
G21
P52
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-065-1
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.