The Scale Effect And Development Countermeasure Of Shadow Bank In China

According to the definition of the Financial Stability Board (FSB),“the shadowbanking system is a credit intermediary organization which free from traditionalbanking system and credit intermediary business, their product deadline,liquiditytransformation, defective credit risk transferation and leverage features increasedsystemic financial risk or risk of regulatory arbitrage". The article will focus onresearching the size effect of the shadow banking in China，and based on the presenceof economies of scale in the future，how to choose country’s shadow bankingdevelopment’ countermeasure.After reading a large number of domestic and foreigndocumentof the shadowbanking, the paper presented the definition of shadow banking in our country, andaccording to the definition, the paper gives the size of the shadow banking in ourcountry about recent four years.Based on the phenomenon ofrapid growth in China, we following the stockmarket scale effect research methods, using the empirical analysis and studying thescale effect of the shadow banking in China. The paper mainly gives two parts ofanalysis, the first one is to compare the scale shadow Banks, commercial Banks andsecurities, to exam the relationship between the size and the yield; The other is toselect several typical in the shadow banking products comparison,to analyze theexistence of internal economies of scale. On this basis, the paper selected the prospecttheory of behavior finance and herding effect for further instructions, concluding thatthe shadow banking existingthe scale effect. This kind of abnormal phenomenon willinevitably make the shadow Banks cause bigger effect on the financial markets, afteranalyzing the shadow Banks’ scale effect, we continue to study the impact of the sizeof the shadow banking effect.Aiming at the phenomenon of scale effect and its impact, the article in the fifthpart forecasts the future development trend of the shadow banking in our country, andput forward to development countermeasureson this abnormal state in the sixth part.The article puts forward to promote financial products innovation, to improve thefinancial regulatory system in China, to accelerate the reform of economic system andsupport the development of the real economy, etc. All these countermeasures will guarantee the development of the shadow banking.In conclusion, this article summarizes the article overall core idea and theattitude of shadow banking future development regulation, we think that shadowBanks, as the inevitable trend of financial innovation, should be reasonably developedin financial regulatory environment.