Author(s)

Jun Han

Affiliation(s)

Statistics College of Lanzhou University of Finance and Economics, Lanzhou 730101, Gansu, China.

Corresponding Author

Jun Han

ABSTRACT

Based on the text analysis of online news reports to measure the uncertainty of China's monetary policy, and using the data of China's listed commercial banks from 2008 to 2017 to empirically examine the impact of China's monetary policy uncertainty on bank credit decision-making, the research results show that monetary policy does not Certainty has a significant inhibitory effect on bank credit supply. When the uncertainty of monetary policy increases, commercial banks will reduce credit supply, and at the same time reduce credit risk by adjusting the credit structure, and tend to issue short-term loans and guaranteed loans with lower risks. Monetary authorities should maintain the stability of monetary policy, actively prevent and resolve the negative impact of policy shocks, in order to better promote a virtuous financial cycle and maintain sustained and healthy economic development.

KEYWORDS

Monetary policy; Policy uncertainty; Bank credit supply; Bank credit structure

CITE THIS PAPER

Jun Han. Monetary policy uncertainty and bank credit decision. World Journal of Economics and Business Research. 2023, 1(1): 8-17. DOI: 10.61784/wjebr231119.

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