How to improve corporate financing more effectively by monetary policy has been a difficult problem for China’s economy. Since the new normal of the economy, the People’s Bank of China has created a monetary policy collateral framework to support corporate financing by linking the central bank’s credit with corporate credit. This paper takes AAA-rated corporate credit bonds as the quasi-natural experiment, and uses the DID model to examine the credit financing effect and its impact mechanism of the central bank’s collateral policy innovation from the micro perspective of enterprises.
The study shows that, the central bank’s policy innovation of including corporate credit bonds into the scope of qualified collateral has significantly expanded the scale of corporate credit financing, especially the scale of long-term loan financing, and reduced the cost of corporate credit financing. Further research finds that, under the framework of monetary policy collateral, the central bank can effectively affect the bank credit supply by adjusting the convenient operation scale of lending and operating interest rate, thus improving corporate credit financing. This paper provides empirical evidence for the effectiveness of the central bank’s collateral policy innovation from the micro perspective of corporate credit financing, which has important implications for better implementing the monetary policy based on collateral, improving corporate financing issues, and promoting high-quality economic development.
The innovation and contribution of this paper are mainly as follows: First, it examines the micro-policy effect of the central bank’s collateral policy innovation from the perspectives of corporate credit financing cost, financing scale and financing structure, which expands and enriches the research scope of China’s new monetary policy, and provides empirical evidence at the micro level for the effectiveness of the monetary policy based on collateral. Second, it reveals the mechanism of the collateral policy innovation of the People’s Bank of China from both commercial banks and enterprises, which has practical significance for implementing the monetary policy based on collateral to better improve corporate financing. Different from the existing research on the mechanism of the central bank’s collateral policy from the perspective of bond spreads, this paper not only reveals the mechanism of the central bank’s collateral policy innovation from the perspective of bank credit supply, but also confirms the credit financing effect of the central bank’s collateral policy innovation from the perspective of corporate financing.