Abstract: By making use of the data from the first quarter of 2005 to the first quarter of 2014, based on the vulnerability of commercial banks, this paper brings the interbank lending market into an analysis framework to test the financial accelerator effect on China’s commercial banks under interest rate shocks and the differences. The result shows that faced with the interest rate impacts, the commercial banks of different types with bank vulnerability have not only significantly different financial accelerator effect, but also present significantly nonlinear and asymmetric characteristics. The relevant policy indications are that when formulate and implement monetary policies the central bank should watch for a chance to make decisions according to the state of the external financing premium and adopt the differentiated operational means to improve the effectiveness of monetary policies.

Key words: interest rate shock; financial fragility; financial accelerator; external financing premium