Research On The Influence Led By Shadow Banking To Stability Of The Banking System In China

The global financial crisis in the US triggered by the global financial crisis in 2007 spread quickly, hit the global economic and financial system. In analyzing the causes of the crisis, a new financial terms-- "shadow banking", began to be known. With the development of financial innovation and liberalization of the economy, the size of the shadow banking continues to expand with amazing speed, which promotes China’s banking system, improves the operational efficiency and optimizes the allocation of resources, but its characteristics of high leverage, information opaque, maturity mismatch distribution and lax supervision also threaten the stability of the banking system. At present, China is still in the bank-dominated financial system, with the bank at the heart of the entire financial system. Its stability plays an irreplaceable role in the healthy development of China’s society and efficient configuration of economic resources. Therefore protecting our banking system stability is the key to maintaining the stable development of China’s national economy.This article is just based on this background, which selects the shadow banking system as the research object, while combines with qualitative and quantitative research approach to analyze the impact on the stability of our banking system. Firstly, we define the concept of shadow banking system, and describe in detail the current development of the shadow banking system in our country; secondly, analyze the impact on the stability of our banking system from the theoretical aspect, including stability enhancement mechanisms and risk transfer mechanisms; finally, select relevant data in the year 2002-2013 to estimate the overall size of China’s shadow banks, and construct indicator variables to measure the stability of bank system, then construct nonlinear model through a series of mathematical analysis methods to analyze the impact on the stability of our banking system.Through the above theoretical research and empirical analysis, we draw the following conclusions: there is a long-term equilibrium relationship between the size of the shadow banking system and banking stability, but its impact is not simply to promote or hinder, while it has two sides. The development of the shadow banking moderately would promote the stability of China’s banking system, but if left to its own expansion, it will have a negative impact on the stability of the banking system. According to this conclusion, some policy suggestions are attempted to be put forward: firstly, we must control the shadow banking-related risks, including the establishment of a macro-prudential regulatory framework and an effective shadow banking information disclosure mechanism, build a firewall between the banking system; secondly, promote the use of shadow banking to improve the healthy and stable development of the economy, including the positive development various financial markets, deregulate administrative financial regulation; thirdly, improve the internal stability of the banking system, including the strengthening of the bank’s internal risk monitoring and training of qualified financial management personnel.