Research On The Influence Of Shadow Banking To The Transmission Mechanism Of China's Monetary Policy

As an important means of macroeconomic regulation and control,monetary policy plays an important role in ensuring the healthy and stable operation of the economy.China's monetary policy has undergone many adjustments,forming a monetary policy regulation system with Chinese characteristics.However,with the continuous expansion of the scale of shadow banking in recent years,China's shadow banking has become a factor that cannot be ignored in the financial market.The appearance of shadow banking will not only affect the transmission efficiency of monetary policy,but also directly affect the effect of monetary policy,which will bring many new challenges to the implementation of monetary policy.It is helpful to strengthen the understanding of the relationship between shadow banking and monetary policy by strengthening the research on the influence of shadow banking to the transmission mechanism of China's monetary policy,so that monetary authorities can make better use of monetary policy to promote the sustained and healthy development of the economy.Based on the analysis of China's monetary policy transmission mechanism,the paper summarizes the current situation of monetary policy transmission mechanism in China.It is believed that the transmission mechanism of monetary policy in China is mainly through interest rate transmission and credit transmission.According to the current situation of shadow banking in China,the composition of shadow banking in China is analyzed.Based on this,through the improvement of the traditional CC-LM model,the CS-LM model including shadow banking factors is constructed.The influence of shadow banking on the intermediate target of the monetary policy transmission mechanism,the channel of transmission,and the impact of the final target are studied in turn.Thus,it is concluded that the development of the shadow banking will have a negative impact on the monetary policy transmission effect through the above factors,which will increase the difficulty of the monetary policy regulation.In order to verify the above theory,the monthly data of-2017 in 2010 is selected to be measured and analyzed.Through the establishment of the vector autoregressive model with the comparative analysis method,the change of the monetary policy transmission mechanism before and after the shadow banking factor is added is tested,and it is proved that the shadow bank will effect according to the interest rate and the credit level.As a result,the effect of monetary policy transmission is weakened to a certain extent,and the effect of the expansion of the shadow bank on the transmission effect of the interest rate path will be greater than the way of credit.Through the impulse response and variance decomposition,the influence of shadow bank on money supply,credit scale,market interest rate,price index,output level and other key variables is tested,and the effect mechanism of shadow banking on the transmission mechanism of monetary policy is verified.Based on the conclusions of the above research,the paper puts forward the improvement of financial related laws and regulations,the strengthening of the management of commercial banks,the strengthening of the monitoring and risk prevention of the shadow banks,the proper improvement of the monetary supply statistics,the strengthening of the way of interest rate transmission,and the optimization of the channel of credit transmission in order to ensure the Chinese monetary policy is continuous and effective.