金融与财务学系列讲座之342期

November 11 Finance Seminar, No. 342

Time: 14:00-15:30, Wednesday, November 11, 2026

Location: Room 503, Starr Building（史带楼503室）

Host: Dr. Zhe Geng （耿哲博士）

Department of Finance, FDSM

Topic: The deposits channel of monetary policy: a quantitative assessment

Speaker: Associate Professor Yang Liu ( 刘洋副教授)

The University of Hong Kong

Abstract: We embed a banking sector with deposit market power into a macroeconomic model to quantify the deposits channel of monetary policy. When interest rates increase, banks raise deposit rates less than one-for-one and deposits flow out of the banking system, leading to contraction in lending and real economic activities. The calibrated model shows that deposit channel amplifies the real effect of monetary policy by 100%. The model can replicate the salient features of banks’ response to monetary policy shocks, such as changes in deposit spreads, net interest margin, deposit volume, asset, net worth, franchise value. This channel is distinct from the bank balance sheet channel, which implies counterfactually large drops of bank net worth and franchise value in response to rate hikes.

Bio: Dr. Yang Liu joined The University of Hong Kong in 2017. He is recognized as a National-level Young Talent. He is the founding co-director of the Wealth Management Academy. He serves as the associate editor of Management Science, Journal of Banking and Finance, and Economic Letters. His research interests span international finance and macroeconomics. He has published in top academic journals such as Journal of Finance, Journal of Financial Economics, Review of Financial Studies, Journal of Monetary Economics, Journal of International Economics, Management Science, and won numerous research awards. He is the principal investigator or co-investigator of an NSFC Excellent Young Scientist Program, an NSFC Major Program, an NSSFC Major Program, an RGC Theme-Based Research Grant, an NSFC Emergency Program, an RGC Early Career Scheme, and multiple RGC General Research Funds. He was a visiting scholar at the International Monetary Fund and a research associate at the Federal Reserve Bank of Philadelphia. He received his Ph.D. in Economics from the University of Pennsylvania and Bachelor of Economics from Fudan University. His research and policy analysis have been widely featured in media such as the Xinhua, Financial Times, Associated Press, AFP, VOA, China Daily, SCMP, HKEJ, Ming Pao, Wen Wei Po, Ta Kung Pao, HK01, Hong Kong TVB, Master Insight, RTHK, Tencent, Sina, NetEase, Sohu, Toutiao, Yahoo, Phoenix News, Economy Chosun, among others.