Research On The Risk And Regulatory Of China’s Shadow Banking System

After the global financial crisisin2008, shadow banking system has been afocus of economic research anddiscussion. its scale continues to expand, shadowbanking system in recent years has become an importantpart of Chinese financialsystem. The shadow banking system of China’s has a significant impact oncommercialbanking system in both positive and negative side.On the one hand,shadow banking systemsatisfy the growing social financing needs,prompts theprofit level of banking，its development has a certain inevitability. On the otherhand, shadow banking system enlarges the financial market systemic risk for itshighleverage, and maturity mismatch.Therefore, the research on the shadowbankingsystem’s influence on the stability of China’s commercial banks,hasimportantreference value for the stable operation of China’s commercial banks andfinancial system.According to the business of the shadow banking system and the correlation oftraditional commercial Banks, the shadow banking system is divided into twoparts， external shadow banking system and internal shadow banking system o, andthe main business are analyzed. According to the business scale got the size ofinternal shadow banking system, draw lessons from other scholar’s researchmethods, obtained the size of external shadow banking system.Annual data from2000-2013is used to measure the size of the shadowbanking and the China’s banking system stability, combined with OLS regressionmodel,the unit root test，cointegration test econometric methods, research therelationship between shadow banking system and the stability of China’scommercial banks. The results show that the rapid growth of the shadow bankingsystem will have negative effect on the stability of the banking system.But the bankstability calculation results also show that in recent years, China’s banking systemstability increased, indicating that the shadow banking system will have littleimpact on the banking system in our country, not enough to affect the stability ofthe banking system.However, its negative effect should not be ignored. Weshouldobjectively treat shadow banking system, take effective strategy, by strengtheningdata detection, and perfect the laws, to supervise and control the shadow bankingsystem, its negative influence and risk will reduction.