Abstract: We make an attempt at researching balance sheet channel and bank lending channel of monetary policy by using loan-level data between firm and bank. By using data of bank-firm lending, firm characteristics and bank characteristics, we get how firm characteristics and bank characteristics influence balance sheet channel and bank lending channel. Our results show that, monetary policy like bank lending rate and interbank offered rate work through balance sheet channel and statutory deposit reserve ratio works through bank lending channel. The larger the firm is, the size of the loan is not sensitive to monetary policy. If banks own larger scale, higher level of liquidity and capital adequacy ratio, the loan size will not be sensitive to monetary policy. State-owned commercial banks and non-state-owned commercial banks play different roles in monetary transmission mechanism.
Keywords: Monetary Policy, Bank Lending Channel, Balance Sheet Channel
source:Finance & Trade Economics ,No12,2013