An Economic Evaluation of Targeted Reserve Requirement Ratio Reduction on Bank Ecosystem Development

In China’s bank-centered financial and economic environment, bank risk attitudes have an important impact on the effective implementation of structural monetary policy, policy can corporate ecosystem through taking by banks. To make assessment evolution banking empirically explore correlation between targeted Reserve Requirement Ratio (RRR) cuts banks’ risk-taking levels in context supply-side reforms, this paper uses multiple regression analysis a fixed-effects model to analyze causal RRR reduction Chinese commercial addition, it mediation effect mechanism. Results show that significantly increased level The findings are pronounced urban However, leverage ratio regulation has restraining This study provides evaluation for benign development under environment government supervision. Future research needs expand sample further examine changes credit scale investment.