Credit Creation Of Chinese Shadow Banking And The Influence

In 2007, American subprime mortgage crisis broke out and rapidly snowballed into global financial crisis. During the progress of exploring the root of the crisis and searching for the coping strategy, more and more people paid attention to the shadow banking represented by asset securitization. The ex post investigation and research showed that just the long-term relaxation of regulation and the expansion of shadow banking’s credit creation of European and American developed economy produced huge risk and buried the seeds of crisis. Though China withstood the impact of this global financial crisis successfully, the scale of credit creation of Chinese shadow banking expanded rapidly during the past decade, which on the one hand eased the financing bottleneck of middle and small-sized enterprises and injected vitality into the domestic financial market, on the other hand generated some negative influence to the development and security of national economy. Therefore, it is significant to lucubrate the credit creation of Chinese shadow banking.After lucubrating the related articles of shadow banking, this article divides Chinese shadow banking into two types:shadow banking of financial institution class and shadow banking of folk financing class according to shadow banking’s essential attribute. Then this article systematically analyses the credit creation mechanism of these two types of shadow banking from the perspective of credit creation theory. On the foundation of this, this article adopts the method of econometrics, selects the sample data from 2003 to 2012 to recon the scale of Chinese shadow banking’s credit creation in the sample period, and makes further analysis about the social economic effect of Chinese shadow banking’s credit creation from positive and negative two aspects. Finally, this article raises some policy suggestions of promoting Chinese shadow banking’s healthy development from two aspects: improving the regulatory mechanism and risk prevention measures and deepening reform of the financial system.