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Academic Journal of Business & Management, 2024, 6(3); doi: 10.25236/AJBM.2024.060329.

Monetary Policy with Double Carbon Target in Collateral Framework: Theory and Empirical Analysis


Wu Chunxin

Corresponding Author:
Wu Chunxin

School of Finance, Anhui University of Finance and Economics, Bengbu, 233030, China


Green credit is included in the scope of qualified collateral, which reflects the policy intention of the central bank to increase its support for the green economy in order to serve the realization of the goal of double carbon. Commercial banks are an important part of the central bank's collateral framework. From the perspective of maximizing the profits of commercial banks, this paper theoretically analyzes the effect of bringing green credit into the qualified collateral framework, which is a monetary policy with double carbon targets. In June 2018, China's central bank announced the acceptance of green credit assets as qualified collateral for MLF, which was a quasi-natural experiment, and we used the method of double difference to make an empirical test. The results show that: firstly, the goal of maximizing commercial banks' own profits makes the green credit assets included in the scope of qualified collateral more valuable, and the central bank brings green credit into the framework of qualified collateral, which increases the financing availability of green credit enterprises; Second, the inclusion of green credit assets in the framework of qualified collateral will reduce the interest rate required by commercial banks to put green credit and reduce the financing cost of green credit enterprises.


central bank collateral; Structural monetary policy; Green credit; Carbon peaking and carbon neutrality goals

Cite This Paper

Wu Chunxin. Monetary Policy with Double Carbon Target in Collateral Framework: Theory and Empirical Analysis. Academic Journal of Business & Management (2024) Vol. 6, Issue 3: 236-242. https://doi.org/10.25236/AJBM.2024.060329.


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