The Effect Shadow Banking Brings On China’s Monetary Policy

For our country, the scale of the shadow banking had get the rapid expansion in the recent years, especially when we took the strictness monetary policy. The shadow banking had been sought after by many experts and scholars in the world. Because our country’s basic national conditions –underdeveloped financial markets and differentiated regulation pattern, it leads to the poor regulations on the shadow banking which has brought serious disturbance to the effect of monetary policy in our country. The originally effective transmission mechanism also get the influence. So studying the shadow banking is of great significance to choose what kind of monetary policy, realize economic goals and maintain the stability of the financial system.First of all, we compared the domestic and foreign experts and scholars’ opinions and interpretations on the shadow banking to analyze the causes, the development status and the potential risks of the shadow banking in our country. It contains the common forms of our country’s shadow banking, especially the financial products which is issued under the cooperation of the bank and the trust. Secondly, taking a specific financial product as a case to analyze, simply introducing the product’s process of operation. By discussing the successful and failed cases of the financial product, makes our understanding the shadow banking deeply. Afterwards, telling the effects on the monetary policies which the shadow banking brought from the aspects of transmission mechanism and policies’ results. These provide a reference for the policy suggestions in the follow. At last, it is the part of the text’s policy suggestions. On the basis of what we have said, providing some proposals on how the shadow banking develop in our country. Mainly combined the causes of the shadow banking and the development status in our country, offering some corresponding policies from the source of development and the supervision aspect.The discussing of the successful and failed cases of the financial product in this text has assists to know the financial product which is unique in our country well. Especially the failed case, it helps us soberly understanding the negative influence of the shadow banking on our economics’ development.