Research on the Impact of China's Monetary Policy on the Risk-taking of Commercial Banks

Abstract

The long-term loose monetary policy has provided conditions for the financial crisis. Whether China's monetary policy will also affect the bank's risk-taking and further affect financial stability, this is a question worthy of discussion. Based on the current situation of commercial banks' risk-taking in China, this paper discusses the impact of monetary policy on the risk exposure of China's commercial banks from the four aspects of valuation, income and cash flow effect, revenue search effect, insurance effect, and mindset effect. Then put forward some suggestions of how to prevent and control risks.