科研之友
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摘要
The degree to which the banking sector opens up will immediately impact the structure of the national financial system, which will then directly influence the transmission mechanism and effect of monetary policy because it is the fundamental link in the financial system. This study describes the DSGE model of two nations with heterogeneous banks in light of the disparities in global capital flows and loan restrictions between Chinese and foreign banks. DSGE stands for Dynamic Stochastic General Equilibrium. The results show that (1) foreign banks can lessen the net worth shocks of local banks when they are subject to negative shocks to their net worth by injecting international capital flows. (2) The buffer mechanism of foreign banks will obstruct the transmission of monetary policy and partially offset its policy effects. (3) The buffer mechanism of foreign banks has a more pronounced interference effect on monetary policy when facing negative shocks to their net worth. The management of foreign banks is increasingly loosening as China's financial opening up quickens. The findings of this paper have policy implications for how to seize the dividends brought by financial openness and control the interference with monetary policy beyond the advantages of foreign banks in stabilizing economic fluctuations.
