The Influence Of Shadow Banking On Financial Stability In China

With the reform and development of financial markets in recent years,the financial structure has undergone qualitative changes,the shadow banking system to adapt to the needs of the financial market and expansion of development,to bring new vitality to the economy.As a product of financial innovation,its influence on financial stability has aroused widespread concern.In our country,development of shadow banking and the United States with other developed countries are different,which means that the impact of China’s shadow banking mechanism and effect of financial stability is different from other countries.In this paper,the influence of shadow banking on financial stability is studied in the context of the dynamic equilibrium of the macro financial stability.First,the development of shadow banking and financial stability are analyzed,and then the mechanism of the influence of shadow banking on financial stability is analyzed.Then,by using the method of the development model of China’s shadow banking,the scale is measured.At the same time,the use of factor analysis from the macro economic operation,capital flows,financial system stability and the international financial market environment,The four aspects to construct the macro financial stability index,and using the HP filtering method for the verification results show that the construction of the index accords with the situation of China’s financial stability.The shadow banking and financial stability index use SVAR analysis,Granger test and impulse response results show that the effect of the scale of development of shadow banking on financial stability in the long run,have negative influence.Finally,through the shadow banking and construction of four indicators of the financial stability subsystem use SVAR analysis,so as to better explain the specific circumstances of the shadow banking on financial stability.According to the impulse response diagram,shadow banking on economic operation of the market operation of macro economy in the short term,there is a positive impact,the long-term effect becomes negative,the effect of shadow banking on capital mobility is not stable,long-term effects in the negative,have long-term impact on the international economic environment.According to the theoretical and empirical analysis,this article from the financial stability of the four subsystems to explain the reasons for theshadow banking impact of the financial stability,and in some developed countries the shadow banking regulatory policies,combined with China’s economic situation,mainly from the improvement of the shadow banking supervision mechanism,some aspects of regulatory measures.Promote the continuous development of the shadow banking at the same time conducive to China’s financial stability.