Credit Supply Cycle And Corporate Shadow Banking Business

In recent years,with the deepening of the regulation of financial "deleveraging",the credit intermediary activities of non-financial enterprises separated from traditional financial institutions have gradually become the focus of attention from all walks of life.More and more researches have focused on the shadow banking behavior of the enterprise sector.At the same time,the central bank constantly uses monetary policy and monetary tools to regulate the speed and intensity of credit supply.As an important way to conduct from the macro level to the micro level,credit fluctuations will act on the behavior of micro-economic subjects.In this context,it is of great significance to study the relationship between credit supply cycle and corporate shadow banking.This article examines the operation of shadow banking in Chinese non-financial enterprises from the perspective of formal credit cycles,and empirically studies Influence of credit supply cycle on corporate shadow banking business by using 2008-2017 Chinese macro credit index and micro data of listed company as well as in the nature of ownership,the degree of financing constraints,the differences between the return on investment and growth of enterprises,the supply of credit cycle impact on non-financial enterprise heterogeneity of shadow banking.The research results show that Chinese non-financial enterprises engaging in shadow banking business have distinct characteristics of the reverse credit cycle,that is,in the period of the contraction of formal credit supply,the scale of listed companies engaging in shadow banking business will increase.Further research finds that:first,during the period of formal credit contraction,the scale of shadow banking business of both state-owned enterprises and non-state-owned enterprises increased,but the expansion scale of shadow banking business of state-owned enterprises was significantly higher than that of non-state-owned enterprises.Second,among enterprises with less financing constraints,the reverse credit cycle of enterprise shadow banking is more obvious.In other words,the less financing constraints faced by enterprises,the greater the expansion of shadow banking business in the reverse credit cycle in the period of formal credit crunch;Thirdly,the enterprises with a higher difference between the return on financial assets and the return on operating assets have greater motivation and incentive to engage in shadow banking business in the period of formal credit crunch,and the scale increment of shadow banking business is also larger.Finally,in the growth analysis measured by the comprehensive evaluation index,enterprises with low growth had a more significant increase in the scale of shadow banking business compared with enterprises with high growth in the period of formal credit crunchThe results of this paper help to further clarify the role played by non-financial corporate shadow banking in our country’s financial system.The non-financial corporate shadow banking business has a significant reverse credit cycle characteristic,indicating that Chinese listed companies have more or less acted as a "credit intermediary" role in the financial market,through some channels to transfer funds to the need for funds but regular credit is available The low-risk enterprises have alleviated the structural shortage of formal credit resources in Chinese financial market to a certain extent.This enlightens us that the current financial market mechanism in China still needs to be improved.For the shadow banking problem,on the one hand,it is necessary to prevent the systemic financial risks it may cause,on the other hand,it cannot completely ignore its positive role.Under the main tone of strict supervision,risk prevention and deleveraging,we should make rational use of the function of shadow banking mechanism of enterprises in financing funds to mitigate the negative impact of formal credit fluctuations on SME financing and economic development.In addition,the continuous innovation of the shadow banking mechanism has also challenged monetary policy.In order to improve the efficiency of monetary policy transmission,the central bank must not only regulate the formal credit issuance during the formulation of monetary policy,but also fully consider the impact of the shadow banking mechanism and try to incorporate it into the monetary policy regulatory system.