Collateral-Based Monetary Policy: Evidence From China

• 成果类型: Article; Early Access
• 署名作者: Fang, Hanming; Wang, Yongqin; Wu, Xian
• 署名单位: University of Pennsylvania; National Bureau of Economic Research; Fudan University; Fudan University; Chinese University of Hong Kong; University of Wisconsin System; University of Wisconsin Madison
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.70012
• 发表日期: 2025
• 关键词: Risk-taking

摘要

We exploit the unique institutional features of Chinese bond markets to estimate the causal effect of collateral-based monetary policy on asset prices and the real economy. A policy change allowed certain bonds to be used as collateral for the Medium-Term Lending Facility in the interbank market, while the same bonds in the exchange market remained ineligible. This change reduced the spreads of the newly eligible bonds by 37-53 basis points, or 10%-15% of the average spread in the secondary interbank market, with a strong pass-through rate of 67 to over 100% to the primary interbank market.