Impact of the joint-stock reform of commercial banks on the effectiveness of monetary policy in China
In: Panoeconomicus: naučno-stručni časopis Saveza Ekonomista Vojvodine ; scientific-professional journal of Economists' Association of Vojvodina, Band 63, Heft 3, S. 325-338
Abstract
Over the past decade, the Chinese government has conducted the joint-stock
reform of state-owned commercial banks. The joint-stock reform improves the
marketization level of the ownership structure of commercial banks and
consequently leads to impacts on the effectiveness of monetary policy. This
paper first presents the impacting mechanisms of the joint-stock reform of
commercial banks on the effectiveness of monetary policy and then constructs
an empirical model to test those impacts. The empirical results show that the
increasing degree of joint-stock reform of commercial banks enhances the
effectiveness of expansionary monetary policy but weakens the effectiveness
of contractionary monetary policy in China.
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