Monetary Policy Shadow Banking And Bank Credit

In recent years,with the continuous innovation and development of China’s financial system,the scale of shadow banking has expanded,and gradually plays an indispensable role in the process of economic operation,which is mainly reflected in two aspects:on the one hand,shadow banking in the process of credit creation will enhance the liquidity of funds,improve the efficiency of use,and then promote the development of social financing system;on the other hand The development of shadow banking is inevitably accompanied by various emerging or potential risks,which brings a certain burden on financial supervision.After the financial crisis in 2008,scholars focused on the relationship between the regulation of monetary policy and the liquidity of banks.Under the background of financial repression,shadow banks in our country are produced.The government’s regulation of financial institutions makes it difficult for many small and medium-sized enterprises to obtain financing.By transferring funds to the off balance sheet to avoid such regulation,banks can obtain profits and provide funds for enterprises,thus promoting the development of shadow banks.It can be seen that China’s monetary policy,shadow bank and bank credit have a strong correlation.This paper will study the role of shadow bank in the transmission of monetary policy,and then analyze the impact of introducing shadow bank on a transmission variable of monetary policy-bank credit.This paper firstly sorts out domestic and foreign literatures,studies the theoretical basis of the impact of monetary policy shocks on bank credit and the theoretical basis of the impact of shadow banking on the transmission channel of monetary policy,and then analyzes the ways that shadow banking ACTS on bank credit.Secondly,in order to improve the comprehensiveness and credibility of the results of the paper,direct method and indirect method are used to measure the scale of shadow banks in different provinces.The measurement results show that the absolute and variable values of shadow banking scale are generally large in areas with high economic development level,while the areas with low development level and low price are relatively smallFinally,we use the data of 48 quarters from 2007.q1 to 2008.q4 in 31 different provinces and cities of China for empirical analysis.The scale of bank credit is the explained variable,and the explained variable is the shadow bank scale,monetary policy tools and the virtual variable of tight monetary policy.The selected control variables are GDP growth rate,CPI growth rate,total growth rate of social retail goods,number of financial institutions,and the panel data fixed effect model is constructed to analyze.The results show that whether indirect method or direct method is used The scale of shadow bank is all over the country.The expansion of the scale of shadow bank will have a positive effect on the scale of bank credit,and the existence of shadow bank system will weaken the effectiveness of monetary policy.By analyzing the robustness of the model,we find that compared with the expansionary monetary policy,the contractive monetary policy has a greater impact on the scale of bank credit.In order to analyze the differences of shadow banking forces in different development regions,31 provinces in China are divided into high-income,middle and high-income,middle and low-income and low-income regions according to the per capita GDP of 2007-2018.The results show that the bank credit transmission channel of monetary policy makes the credit scale expand or decrease correspondingly when the monetary policy is expansionary or contractionary,and this effect is most significant in high-income provinces.The transmission effect of monetary policy will be obstructed by shadow banking,and the obstructing force is higher in high and low income provinces and high income provinces.Therefore,we should actively and effectively guide the development of shadow banking,with appropriate supervision,so that its positive force on the economy is greater than its negative force.