| Abstract | This paper adopt the difference-in-differences model to analyze the influence of the central bank collateral frameworks on credit spread of bonds included in eligible collateral. Empirical results show that: first, the central bank collateral frameworks significantly promote the reduction of credit spreads of bonds included in eligible collateral, which reduce enterprise financing costs. Second, the impact of the central bank collateral frameworks on the bonds of enterprises with different ownership is heterogeneous. It has a greater impact on private enterprises' bonds which alleviate the financing difficulty of private enterprises, because of central bank increases the credit of qualified collateral. Third, when the central bank implements loose monetary policy or when the proportion of eligible collateral in the bond market is high, the effect of the central bank collateral frameworks on the bond credit spread will be weakened. In order to support the important and weak areas in the economy, central bank could adjust collateral frameworks to include relevant bonds or credit assets as eligible collateral, so that the financing costs of these departments will reduce. Furthermore, in the process of implementing the collateral frameworks, monetary policy environment and bond market environment should be taken into account, so as to make central bank collateral frameworks work better. |