Monetary policy and liquidity risk - Evidence from Chinese banks

摘要

With the wide use of fair value accounting, it is generally believed that the growth of the economy will be inhibited by the accounting accelerator effect, however in the economic downturn, whether systematic risk from the bank's liquidity reduction will be expanded, and whether the economy can be suppressed continued downward in the relaxed monetary policy. The study selects the banking industry as the research sample, and empirically studies the bank measured at fair value, at the same time liquidity risk and monetary policy have also been taken into account, research on the impact of currency effects accounting accelerators. The study finds that in the economic downturn, banks liquidity lowering effect on economic growth is limited, but when measured at fair value, bank liquidity risks to economic growth have a significant negative effect, but a more relaxed monetary policy to a certain extent mitigate this effect.