A Study On The Impact Of Shadow Banks On The Financing Of SME In China

Small and medium-sized enterprises have played an indispensable role in promoting China's economic development and became an important part of the national economy.In 2015,the number of small and medium-sized enterprises in China's industrial enterprises reached 368,000,accounting for 97% of the total number of enterprises.At the same time,tax contribution rate is more than 50%.It is obvious that small and medium-sized enterprises are important engines to stimulate China's economy.However,they are facing a lot of obstacles in the course of their development.One of the most important problems is the financing problems.The main financing channels of small and medium-sized enterprises are internal financing and external financing.SMEs in the past are too reliant on endogenous financing,which increased the debt burden of enterprises.In the external financing,the traditional commercial banks are more inclined to the large enterprises with good development and good credit.Because of the spotty business conditions and financial situation,small and medium-sized enterprises are difficult to directly obtain financial support.SMEs have an urgent need to find new financing channels to get rid of the current financing difficulties for their own development.After the US financial crisis in 2008,the term "shadow bank" began to appear frequently.Domestic and foreign scholars generally believe that the shadow bank is one of the important incentives for the sub-prime mortgage crisis.In recent years,with the improvement and continuous development of China's financial system,China's shadow banking system has also developed rapidly.Shadow bank's operating mode is flexible and diverse and are less regulated constraints,which has become a new solution to the financing of small and medium enterprises financial market and to a large extent alleviate the financing difficulties of small and medium enterprises.But the systemic risk within the shadow bank,the lack of strong regulation and other characteristics also increase the financing risk of SMEs.In this paper,I firstly analyzed the relevant theories and literatures of shadow banks and small and medium-sized enterprises,and systematically analyzed the characteristics of China's shadow banks,the causes and the financing channels ofSMEs and the problems faced by small and medium-sized enterprises and then analyzes the internal mechanism of shadow bank's influence to the financing of small and medium-sized enterprises.The shadow bank acting as a financial intermediary firstly affect capital supply,liquidity and lending rates,and ultimately have an impact on the financing of SMEs.On the basis of this theoretical analysis,the Logit regression model is established by using the financial data of the SME board and the overall financing constraint index of the SME is constructed.Secondly,by constructing the SVAR model,this paper analyzes the relationship between the financing constraint index of small and medium-sized enterprises,the size of the shadow bank and the degree of the real economy,and draws the following conclusions:(1)The development of shadow banks in the short term is indeed conducive to alleviate the financing pressure of SMEs,and is conducive to the development of the real economy.In the medium and long term,due to the shadow bank's regulatory issues and unknown risks,the shadow bank further increased the financing costs of SMEs,have a slight hindrance to small and medium enterprises financing constraints.(2)the deterioration of the financing environment of small and medium enterprises will stimulate the development of shadow banks.(3)the promotion of the real economy will promote the development of shadow banks in the short term,but in the latter part will constraint the development of shadow banks.At the end of the paper,the author puts forward the specific suggestions to the supervisors,the shadow banks and the small and medium-sized enterprises respectively:(1)The government and relevant supervisors should improve the supervision mechanism of the shadow banks and guide the operation of the shadow banks.(2)Shadow Bank should improve the internal risk control mechanism,strengthen innovation to meet the financing needs of SMEs.(3)small and medium enterprises should improve the management system and enhance business strength.