Study On The Influence Of Shadow Banking On The Monetary Policy Transmission Mechanism

2008 US subprime mortgage crisis quickly spread to systemic financial crisis led to the global financial crisis. Root of the crisis is shadow banking system that development cycle is longer, but not familiar to us. Shadow banking generated at the wave of Western financial liberalization, the asset securitization of financial innovation exuberance promote the continuous development of the shadow banking. With the development of China’s financial reform, also of the shadow banking developed rapidly, while the factors relative imperfections and institutional mechanisms of the financial system has become a necessary condition for the development of shadow banking. Unlike US-based securities into the shadow banking system, China’s shadow banks with conventional banks are closely connected, the shadow banking system is still in essence a simple alternative to traditional credit. At this stage, the shadow banking effective complement to traditional financing channels, promote financial innovation system,improve the efficiency of allocation of financial resources, but its independent bank credit creation scale, blurring the money supply statistics caliber, the impact of the effective functioning of the monetary policy transmission mechanism, coupled with low transparency mechanism shadow banking operations, lack of effective supervision, lack of internal control mechanisms, etc., will no doubt have a greater impact to our financial system and monetary policy, and macro-control policies.On the basis of the relevant theory and literature, from the background and development of the shadow banking point of view, based on our existing financial system, to define the concept of shadow banking, shadow banking and generate from the reasons, the main structure, the two shadow banks contrast, the impact of theshadow banking system, the financial analysis of four aspects of the shadow banking system, next to the shadow banking credit creation mechanism is theoretical support,drawing on classical theory and the monetary policy transmission mechanism of monetary policy transmission mechanism are summarized on the basis of the analysis focuses on the shadow banking system to interest rate transmission mechanism of monetary policy, credit transmission mechanism of monetary supply and the impact of monetary policy instruments. Finally, an empirical test and analyze the impact of the shadow banking on China’s monetary policy transmission mechanism through VAR econometric methods and theoretical and empirical research based on China’s monetary authorities made binding the content of the shadow banking system and monetary policy features innovative Strategies and regulators respond to the shadow banking development in order to improve the country’s macro-control mechanism, so as to better promote the healthy and sustainable development of our economy. The results showed that the shadow banking in our lower level of development, the size of the shadow banking 2014 estimate of 33 trillion yuan, only 25% of the traditional commercial banks,but its development really impact the effective transmission of monetary policy.Specifically, the shadow banking diversion of loan scale traditional financial institutions,resulting in M2 can not objectively reflect the real money supply, weakening the credit transmission channel of monetary policy, while the risk premium higher shadow banking objectively requires increased market interest rates and social financing costs,price signals interfere with transfer of monetary policy is not conducive to effective transmission of monetary policy interest rate channel. In addition, the ultimate effect of monetary policy, the development of the shadow banking despite economic growth in the short term there is a certain role, but in the long run is not conducive to the healthy development of the economy. Conclusion Based on the above, we should continue to advance including interest rate market, build multi-level capital markets, including the financial system, improve the information disclosure mechanism shadow banks, the central bank should expand the money supply statistics caliber, innovative tool of monetary policy, from a single quantitative tools to quantitative and price instruments combine the direction of change, the shadow banking system into the monetary policy transmission mechanism be considered.