Academic Journal of Business & Management, 2024, 6(10); doi: 10.25236/AJBM.2024.061032.
Wenzhuo Wang, Sisi Yang, Xin Liao
Business School, University of Shanghai for Science and Technology, Shanghai, China
Against the backdrop of rapid development in financial markets, the urgency of managing and mitigating financial risks has escalated, with increasing demands for refining monetary policy. This paper empirically examines the transmission effects of the Medium-term Lending Facility (MLF) within the context of systemic financial risk. The findings indicate that in low-risk environments, both quantity-based and price-based transmission channels effectively mitigate risk shocks and maintain stability. In high-risk environments, however, the effectiveness of these channels is reduced, with the quantity-based channel proving more effective in bolstering market confidence. Additionally, in low-risk environments, the credit, price, and output effects of the MLF are relatively stable, whereas they become more complex and require a longer recovery period in high-risk environments.
Medium-term Lending Facility, Monetary Policy Transmission Effects, Systemic Financial Risk, MS-VAR Model
Wenzhuo Wang, Sisi Yang, Xin Liao. Research on the transmission effect of China's medium-term lending facility from the perspective of systemic financial risk. Academic Journal of Business & Management (2024) Vol. 6, Issue 10: 218-224. https://doi.org/10.25236/AJBM.2024.061032.
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