Impact Of Chinese Shadow Banks On Commercial Banks’ Operating Performance

Chinese shadow banks’ astonishing expanding speed makes it produce deeper impact on the financial system, the real economy and commercial banks. But the current research of the influence of Chinese shadow banks on commercial banks mostly focus on qualitative analysis or view the commercial banks as a single entity which ignores the differences of impact in commercial banks caused by different capital structure and business models.For this, this article will not only discuss the impact of the shadow banks on commercial banks’ performance, but also analyze the differences in the shadow banks’ impact on the three kinds of banks by sorting commercial banks into three kinds, five big banks, joint-stock banks and city commercial banks. In this study, firstly define and classify the shadow banks based on " No.107 notice ", and calculate the size of the shadow banks based on model; then, construct management performance indicator by factor analysis model; Prior empirical analysis, this paper analyze the influencing mechanism of the shadow banks on commercial banks’ performance form security, liquidity and profitability, growth, and makes a brief statement of the difference of influence between the three types of the commercial banks affected by shadow banks; Finally, according to previous text, the article adopts VAR model to analyze the impact of shadow banks on the performance of commercial banks.Through research, this paper finds that the performance impact of the shadow banks on commercial banks are significant, but there are significant differences: the impact of five big banks and joint-stock banks are negative; contrary to other types of commercial banks, city commercial banks bear the positive impact. Through analysis, we believe that the shadow banks should be primarily regulate and guide legitimately from supervision and management perspective, supply some recommendations for improvements in the current regulatory and supervisory field. For the significance and the differences of shadow banks’ impact on commercial banks, the paper also made suggestions on banks.