Research On The Impact Of Shadow Banks On Risk-taking Of Commercial Banks In China

With the continuous development of financial innovation in China,shadow banking system has become an indispensable part of financial development,and stable development of its affects the stability of the whole financial market.As a supplement to formal financial institutions,shadow banking institutions play an important role in the development of the whole economy.However,with the deepening of people's understanding of the characteristics and risks of the shadow banking system,and the implementation of strong government regulatory measures,The development of shadow banking is gradually declining and the growth rate tends to slow.Under the condition of promoting the stability of the whole financial system,many small and medium-sized enterprises have changed from the original shadow banking financing channel to formal financing institutions.Some small and medium-sized enterprises have to face the current situation of bankruptcy because they can not obtain the funds needed for operation in time,which leads to the resistance of the development of the entity economy.It can be seen that,at this stage,the existence of shadow banks does not bring indelible damage to the whole economy and financial system.Shadow banking as the product of market development at present,how to guide its benign development,bring innovation vitality to the financial system,and bring steady development to the real economy are the core issues that need to be considered.Commercial banks as the main body of China's financial system,its risk largely determines the development of the whole financial system.For China's commercial banks,banks have the motivation to engage in shadow banking activities because of the consideration of avoiding supervision and the need to improve their own profits.Various types of shadow banking business will also closely link commercial banks with various shadow institutions,increasing the speed and scope of risk contagion of the entire financial system,but the development of shadow banking on the other hand has increased the diversity of bank revenue,and improved its ability to resist risks.Therefore,this paper uses the unobserved loan amount as the sum of the size of shadow banks outside the bank and the size of shadow banking business engaged by commercial banks to measure the total size of shadow banks in China,and to select and measure the indicators of the level of risk-taking of banks.Supported by Eviews 10,this paper makes an empirical study on the quantitative relationship between the two.The empirical results show that there is a threshold effect between the relative size of shadow banks and the risk-taking of commercial banks.The closer the size of shadow banks approaches the threshold,the smaller the risk-taking level of commercial banks.And when the size of shadow banks is below the threshold,the growth of the size of shadow banks will not lead to an increase in the level of risk-taking of commercial banks;on the contrary,it will make the level of risk-taking of banks larger.