Twopillar policies constitute a crucial part of the postcrisis financial stabilization framework. As regards ameliorating the twopillar regulatory framework and mitigating banking sector risks, it is crucial to examine the effect of twopillar policies on bank risktaking in a systematical way. Hence, this paper analyzes the transmission mechanism between the twopillar policies and bank risktaking from a micro perspective. Based on this, an empirical study is conducted using banklevel panel data from 262 commercial banks in China from 2007 to 2020, to test the effects. The findings are as follows: Contractionary monetary policy and macroprudential regulation both exert a marginal reducing effect on bank risktaking, while loose monetary policy exerts a risk spillover effect on banks, which can be mitigated by macroprudential regulation. Mechanism analysis shows that macroprudential regulation mitigates the spillover effect of monetary policy by alleviating the negative impact of lowinterest rate monetary policy on bank charter value and by attenuating the procyclical adjustment of bank leverage, thereby performing a coordinated riskabating effect. In terms of crosssectional dimension, interbank connection exerts an asymmetric influence on the coordination effect of twopillar policies on bank risktaking. In a monetaryeasing environment, an increase in the interbank connection level weakens the mitigating effect of macroprudential regulation on the risk spillover generated by loose monetary policy. In a monetarytightening environment, an increase in interbank connection level worsens the weakening effect of macroprudential regulation on the riskreducing effect of contractionary monetary policy. Besides, twopillar policies generate a better coordinated riskabating effect on larger banks or those with a lower proportion of noninterest rate revenue. In terms of the time dimension, interest rate marketization strengthens the coordinated riskabating effect of twopillar policies, while increased monetary policy uncertainty weakens that effect.