In recent years，the financial reform of interest rate liberalization of financial is implementing gradually.Compared to developed countries，our country’s monetary policy transmission mechanism，financial supervision and financial market have its uniqueness because of the long-term financial repression during our economic development.It is the financial repression as well as avoiding financial regulator that causes our country commercial bank assets and liabilities structure adjustment.Moreover，bank assets relate to foreign exchange market，money market and bond market so that the dynamic asset allocation behavior of our commercial bank will conduct monetary policy and financial regulation.Under the background of financial repression，it has important theoretical and practical significance to research the monetary policy transmission and the behavior choice of commercial banks in the process of the implementation of financial supervision.

As for theoretical value，this book enriches theoretical research of monetary policy transmission mechanism.This mechanism，to an appreciable extent，is the basis of theory by which monetary policy tools are chosen，and our country is in the phase of gradual reform from financial repression to financial freedom，monetary policy transmission is special.Hence in the context of financial repression，this book is greatly significant to study monetary policy transmission mechanism combining business banks’ selections of asset allocation behaviors.

As for practical value，the current financial development of our country is mainly manifested as follows： the coexistence of financial repression and financial reform as well as the coexistence of bank-leading financial industry and the development of financial market.Under such a background，this book studies the particularity of the monetary policy transmission mechanism，and the influence of the change of the bank’s asset allocation behavior on the monetary policy effect.Whether it is from the micro perspective for the development of the banking industry or from the macroscopic perspective of economic development，under the circumstance of rapidly changing financial industry of China，understanding how to choose appropriate monetary policy tools to adapt to new transmission channels of monetary policy and studying the macro-prudential supervision and monetary policy coordination in order to take better effects of monetary policy have crucial practical significance.

The main part of this book is from chapter 3 to chapter 6.Chapter 3 summarizes statistical analysis prosperous situation of our country banks in recent years，and suggests that this prosperity is the result from long-playing financial repression.Financial repression in banks manifests itself mainly in admission limits，restrictions of deposit and credit interest rates，monopoly authorized by administration and dominance of four major banks.

The fourth chapter focuses on whether the effect of monetary policy implemented by central bank will be weakened because of the selected behavior of commercial banks or not，under the background of long-term financial repression.In this paper，we inferred theoretical conclusion after a statistical analysis about some indexes，Including Required deposit reserve ratio and Deposit growth ratio and others indicators.The increase of Required deposit reserve ratio leads to financial products yields rose，thus causing the transfer and sluggish growth of deposits.Empirical analysis shows a weak correlation between Loan growth and Required deposit reserve ratio，and a negative correlation between Deposit growth and financial products expected yield，meanwhile CHIBOR strongly inhibited Loans growth.The empirical results confirm theoretical reasoning，that with the growth of financial repression and the expanding of financial products scale，the bank balance sheet structure can change，representative quantitative monetary policy tool like Required deposit reserve ratio can have a limited effect on frozen funds，the correlation between credit and Required deposit reserve ratio declined，finally the effect of monetary policy has been weakened.

The fifth chapter，in accordance with the order of the three pillars of Basel，empirically analyzes the banking supervision and the behavior of China’s commercial banks.First，this book analyzes the relationship between capital adequacy ratio and the bank shareholders’ equity/total assets，which confirmed that some banks may beautify the capital adequacy ratio.Then we analyze the countercyclical capital buffer，and make an empirical analysis based on the actual conditions of our country.The results indicate that China’s commercial banks do not have the countercyclical capital buffer，and the research conclusion has practical significance for perfecting the capital adequacy supervision on commercial banks.

This book takes loan-to-deposit ratio supervisory indicator as an example，begins with the controversy of loan-to-deposit ratio，analyzes the effect of appraising the liquidity of commercial banks，the regulation function of macro economy and whether commercial banks use regulatory arbitrage to whitewash loan-to-deposit ratio.Under the realistic background that the same businesses of commercial banks are on the rise and attracting more attention recent years，this book analyzes the relationship between the same businesses of listed banks and bank risks.Firstly this book compares the same businesses assets proportion and loan assets proportion in listed banks，which illustrates the development of the same businesses assets in recent years costs loan sources and the small and medium listed banks develop radically in terms of their same businesses assets.The prosperous boom of buying back the sale of financial assets gives explanations that the same businesses not only perform the function of adjusting cash liquidity，but also meet of need of profit and avoiding supervision.Econometric analysis confirms that pressure of loan-to-deposit ratio and capital adequacy ratio stimulates the development of the same businesses in listed banks and the rise of the same businesses assets aggravates the risk of banks，especially joint-stock banks.By constructing default probability model，we draws a conclusion that the same bank businesses fluctuation is contagious to some extent.

The book analyzes market discipline and the behavior of commercial Banks in the view of information disclosure.The results indicate that the bank chairman secretary shareholding did not cause a drop in the quality of information disclosure but improve it actually，other personal characteristics of chairman secretary and information disclosure overall bank have not been improved.Further research shows that long-term of shareholding and the simplicity of business assets in the city commercial bank may constrain the chairman secretary holdings for the selection of disclosure of information，thus weakening the effect of “insider control”.It is suggested to strengthen the commercial banks information disclosure and improve the system of board secretary.

The sixth chapter in the book analyzes the coordination of the monetary policy and macro-prudential regulation，and discusses the implementation of financial liberalization in China and some suggestions of macro-prudential regulation.The seventh chapter makes the conclusion of the book.

Keywords：Financial Repression Monetary Policy Bank Asset Allocation Macro-Prudential Supervision