| Since the US subprime mortgage crisis triggered a global financial crisis, the Shadow banking is well known. The financial new vocabulary has been active in recent years in various academic forums, seminars and economic media. Paul Macaulay, the PIMCO executive director, put forward the concept of shadow banking in the peak of the American securitization. It is defined as a kind of non-bank financial institutions, which engaging in financial activities similar to traditional commercial banks, to provide financing and credit, but not less regulated by the banking regulatory system. Compared with the US and European countries, China focus on shadow banking relatively late. With the rapid economic development and the demand for the currency continues to increase, China’s financial system continues to improve. The shadow banking of China appear jointly promote the vigorous development in financial innovation, globalization, diversification and integration management. According to the Financial Stability Board report in 2014,2013 China share in the global shadow bank scale than the proportion of 2007 increased two fold, a row in global third after the UK and American. The financial supervision blue book:China’s financial supervision report statistics of non-traditional credit part of the shadow banking financing scale is about 27 trillion Yuan.In fact, the rapid development of China’s shadow banks in these years is closely related to the macroeconomic policy adjustment of the government. The impact of the global financial crisis on China is relatively small, in part because the launch of the "four trillion" policy to stimulate the domestic economy. Bank savings interest rates below the rate of inflation is caused by loose monetary policy, which makes the commercial bank deposit loss to forced commercial bank innovation. At the same time, increased currency to stimulate the investment desire of enterprises, but the government gradually began to tighten monetary policy after the Four Trillion plan three years later. The move aimed to regulate the real estate market which develop too quickly, make many small and medium enterprises difficult to obtain credit funds and close to bankruptcy. Therefore, these enterprises turned to the shadow banks in order to obtain the sustainable management of funds, so that this series of policy changes in fact for shadow banks provide growing hotbed. Some events about several bank financial products and trust products can not be honored at the date of maturity, as well as borrowing funds strand breaks in Wenzhou area, making negative emotions on the shadow banking gradually warming. At root, there are four main reasons of the shadow banking China:capital supply and demand imbalance, the traditional banking business innovation, residents of personal financial veto power, and the lack of related regulations. The comprehensive effects of these main reasons made the shadow banks in China’s rapidly expanding.There are very different in many ways of shadow banks such as the components and operation mechanism between Chinese and Europe and America. Composition of the Chinese shadow banks mainly has:silver letter financial cooperation products, the silver card cooperation financial products, bill business; commercial banks entrusted loans, and trust loans etc. Participating agencies include certain department of a large number of non bank financial intermediaries and the traditional commercial banks. Shadow Banks to replace or supplement the traditional commercial bank credit intermediary function, will be part of the savings into investment. The development of its system, enrich the supply and demand of funds channel, effectively improve the part in some sectors and the development of enterprise funds shortage trouble. For example, small and medium-sized enterprise is the important part in the development of China’s real economy, the shadow banking system can provide a certain amount of financing support for them. But on the other hand, shadow banks at the same time to real estate and other restricted sectors provide development funds, which affected the implementation of the national economic structure adjustment and optimization of policy. Because of the shadow banking regulation is not comprehensive, but part of the shadow banking financial products or shadow banking products already has the characteristics of similar to money, and out of the central bank regulation of monetary policy, thus affecting the effects of the implementation of the monetary policy goals, limits the traditional commercial Banks play a role in the process of monetary policy transmission.How to view shadow banking objectively? Impact of shadow banking development is good or bad? How to make healthy development of the shadow banking system and to serve the real economy? In order to solve these doubts, in contrast to existing documents, the paper proposes definition of shadow banking according to the actual situation of China’s shadow banking, delving into the fundamental cause of the shadow banking in China. Then analysis the present situation of typical shadow banking business detailed. On the basis of previous theoretical analysis to estimate the size of the shadow banking in China in 2003-2013 with VAR model. After the analysis of empirical results, this paper thinks that shadow banking is a double-edged sword. On the one hand, it showed inhibitory effect on the development of China’s macro economy, has brought challenges to China’s financial stability. On the other hand shadow banking in the period of China’s financial reform enrich the financial product structure, broaden the financing channels, and played a promoting role to the real economy sustainable development. This instability in the role of financial development has attracted special attention of regulatory authorities. As early as in 2011 May, the former chairman of Chinese banking supervision committee Liu Mingkang clearly pointed out, should be the shadow banking as one of the key risk prevention and control. So according to the quantitative analysis result, the article puts forward relevant policy Suggestions to shadow Banks, making Shadow banking in China while avoiding risk, can present a standard and health development model, thereby contribute to the macro economic development better. |
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