Analysis Of China Industrial Bank's Shadow Banking Business

It is considered that Shadow Banking System has an important role for economic growth and to the financial markets of many countries within last year's decades.In today's world,almost many countries banking and non-banking institutions involves in the process of shadow banking business fully or partly.Shadow banking show itself efficient,as well as risky upon the countries monetary policy and overall financial situation.Our paper will provide China's shadow banking special features,efficiency,risks,and main reasons of existence.While doing above research we find that China's shadow banking business is led by small and medium sized commercial banks(SMBs).It's the special feature of itself.The reasons of SMBs running shadowbanking business we will talk more narrowly on Chapter 4.But most of the other countries shadow banking business led by its non-banking institutions.To define more narrowly about its situation in China we will choose one of the SMBs as our case study,which is China Industrial Bank(IB).To examine whether its situation indicates higher or lower size of shadow banking business we will use statistical description model,theoretical description model,case study analysis,financial marketing analysis will be applied also will use three shadow banking measurements.Incase of if we got shadow banking measurements results of IB it is not enough to conclude the situation of IB's shadow banking business as well as China's SMB's shadow banking business trend.So we will also choose other ten similar SMBs to apply our three shadow-banking measurements to compare with IB's results and to find out whether IB's having way too higher or lower shadow banking business in itself.So on,to make an analyze on results of shadow banking 3 size ratios with other financial indicators to find out the relation between shadow banking ratios with financial indicators which relate to shadow banking business such as return ratios(ROE,ROA),liquidity ratio LDR,risk ratio(NPL,provision coverage ratio),and safety ratio(CAR)on IB and other 10 SMBs.After all these procedures we will define the trend of shadow banking business among SMBs in China.Also we would make clear understanding of the main reasons,advantages and risks to having such three shadow banking measurements in IB.Finally we had the clear conclusion of IB's shadow banking business situation as well as China's shadow banking business situation among commercial banks.