The Impact Of Shadow Banking On The Development Of Real Economy In China

Shadow Bank has become an important force in the entire social financing system of China,especially for special industries such as small and medium-sized enterprises and real estate,which has played an irreplaceable role in promoting the healthy development of the financial industry and enhancing the service entity.Along with the rapid development of shadow bank scale,the high degree of risk,the risk of high contagiousness in the development process and other negatives impact on economic development are not to be underestimated.Therefore,a thorough study of the impact of shadow banking on the development of real economy in China is of great significance to guard against financial system risks and enhance the ability of financial services to the real economy.The paper initially reviews relevant literatures from China and abroad from three aspects:the definition and functionn of shadow banking,the impact of shadow banking on financial stability,and the impact of shadow banking on economic development.Then,based on the theories of regulatory arbitrage,financial intermediation and financial vulnerability,from the two ways of shadow banking's effect on social financing and financial system stability,it concretely analyses the influence mechanism of shadow banking on real economic development in China.Then,according to the official classification of shadow banking,the paper introduces the current development status of three types of shadow banking institutions and business in China,and measures the overall size of shadow banking in China.Next,it uses the entropy method to construct the stability index of financial system and select the size of shadow bank,the stability index of financial system,PMI index and GDP-related output value as the main research variables to empirically analyze the impact of shadow banking on real economy in China.Finally,the article combines the development status of shadow banking and the impact mechanism on the real economic development,and puts forward relevant policy recommendations based on the idea of co-existence of supervision and development.The conclusion of the paper:The development of shadow banking can promote the rapid development of the real economy in the short term,but in the long run it will reduce the stability of the financial system,and then bring negative impact on the development of the real economy.Although the negative impact is small,it lasts for a long time and is difficult to eliminate;As far as the subdivision effect of shadow banking on various types of enterprises of different sizes in the real economy is concerned,the role of shadow banking in promoting the development of large and medium-sized enterprises is not obvious,but in promoting small enterprises is remarkable.Therefore,China should continuously improve shadow banking supervision by improving risk early warning and isolation mechanisms and other ways,strengthen the construction of the system of shadow bank,enhance investors' awareness of risk prevention,and better play the role of shadow bank in promoting the real economy on the basis of maintaining the stability of the financial system.