Shadow Banks' Influence On Commercial Banks' Stability Based On The Empirical Research

Recent years,China's shadow banking develops in High speed.plays an important role in many aspects since it arose,such as making up for the traditional credit liquidity shortage,financing channels,promoting the development of financial market and benefiting for the development of financial integration,and so on.The commercial Banks who carry out the shadow banking can avoid the deposit reserve,capital adequacy ratio and the restrictions of Loan-to-deposit ratio in a way,and it improves the ability of bank's profitability and cash flow.However,shadow banks have the character of internal high leverage,term mismatch,easily accumulating financial risks,and easily transfering to other financial institutions such as commercial Banks.so how do the relationship between like between the stability of the shadow banking and commercial banking?In theory,the commercial bank's shadow banking risk is in control because the underlying projects are almost government platform projects or well performing corporate.But there are numerous shadow banking institutions,and their risk management level differ,so the degree of the effect on the stability of the commercial Banks are inevitably different.So this article is divided into two aspects of internal and external shadow banking of commercial bank to explore the development of the shadow banking relationship with the stability of the commercial bank.This paper uses the combination of qualitative and quantitative analysis method.Firstly,this paper qualitative analysis the effect on the stability of the shadow banking system to our country commercial bank from the pros and cons.Secondly,establishing a model to measure our country commercial bank risk score and understand the risk situation of Chinese commercial Banks.Thirdly,establishing OLS regression model to measure the internal commercial Banks shadow Banks' effect on the stability of the commercial Banks.The study found that the development of the commercial Banks internal shadow banking size and stability of commercial Banks correlates positively,namely,the development of the commercial Banks internal shadow Banks scale is better,the greater the its stability.Then,this article measure the risk of commercial Banks outside the shadow Banks to commercial Banks spillover effect in the conditional value at risk CoVaR method t,the empirical results show that commercial Banks outside the shadow Banks for the risk of commercial Banks have significant spillover effect,so we should perfect the relevant regulations,to ensuring the safe operation of the entire financial system.