Chinese Shadow Banking Development And The Impact On The Economy

Since maturity payment crisis outbreak one after another in commercial banks’ financial products and trust company’s’trust scheme in2012, raising concerns about the rapid expansion of the shadow bank leading to increased risk and systemic crises may erupt. In-depth study on connotation, the risk structure and the impact on the economy of Chinese shadow bank is the foundation of our financial regulatory adjustments related concepts and models.Based on the comparative analysis of the nature, characteristics and risk structure of the two countries’shadow bank, found our shadow bank’s leverage ratio, liquidity mismatch and maturity mismatch are not so radical adventure as American and European countries. The risk is still relatively safe zone. The shadow bank system has a very big difference in the country like the United States as the main derivatives trading to the shadow bank system. Our shadow bank is more like financial institutions circumvent the regulatory environment in stringent financial regulation, a performance in financial development and diversification financing process.In the empirical level, the article is based from February2006to May2013monthly data use SVAR model to analyze the impact of the size of the shadow banking on GDP and monetary policy as well as various economic variables on the development of the shadow banking. First, the problem of the shadow banking more and more prominent, along with investment in stimulating economic growth sluggish, the shadow banking on economic growth and more obvious negative effects; Secondly, although the role of the shadow banking credit intermediation have some influence on the central bank’s monetary policy effect, but the effect of the impact of monetary policy tools to measure the CPI, its influence is weak. Therefore, the effectiveness of monetary policy point of view, the role of the shadow banking is limited, only weakly affects the money supply in the market; Third, higher borrowing costs promote the development of the shadow banking; Fourth, the development of the economic also has a role in promoting development of the shadow banking When the economic situation is getting better, the market is expected to see more, increasing financing needs of enterprises, many do not have bank credit qualifications SMEs and large enterprises which beyond the line of credit had obtain funds through shadow banking channels, and it will also promote the expansion of the scale of the shadow banking.Finally, thought the U.S. shadow bank supervision’s regime change research before and after the financial crisis, combined with China’s financial supervision and shadow banking size and stage of development of the situation, this paper presents the perspective of long-term financial development should be dealing with the financial regulation and financial innovation. A clear and rational understanding of the Chinese shadow bank premise, according to the shadow banking developments appropriate adjustments related regulatory philosophy and regulatory details. Necessary to provide appropriate incentives for financial innovation in various dynamic financial markets, but also a step ahead of all possible statistical analysis of potential risks, and to develop appropriate strategies and plans.