Empirical Study On The Influence Of Deposit Competition On Shadow Banking

"Deposit making bank" has always been regarded as a guideline by the banking industry.Deposits,as the bank's most important source of funds,it is the principle of making profits on the premise of ensuring the safety and liquidity of commercial banks,belong to banks' on-balance sheet liabilities.Since the financial crisis in 2008,in the context of deepening financial reforms,China 's financial market has begun to experience financial disintermediation and decentralization.The accompanying effects have been the decline in the growth rate of traditional commercial bank deposits while the gradually increasing scale of shadow banking expansion.Those days when the banking industry achieved high profit margins by virtue of its monopoly status are gone,competition for deposits is growing?Many studies believe that commercial banks under financial restraint have the incentive to participate in shadow banking business.The business form for banks' participation in shadow banking is mainly based on bank wealth management.Therefore,based on the existing research,this article further explores the impact of deposit competition on shadow.Bank influence.This will provide an empirical theoretical basis for China's financial regulatory authorities to manage deposit competition and shadow banking.Based on the research literature on deposit competition and shadow banking at home and abroad,this paper summarizes the theoretical overview and development status of deposit competition and shadow banking.By comparison,the Lerner index is selected as the measurement index of deposit surplus balance of wealth management products of commercial banks in China is selected.Logarithms are used like a measure of shadow banking.For empirical research,this article takes 16 national large-scale listed commercial banks in China as research object,intercepting their microdata from 2010 to 2018,and draws lessons from Guo Ye and Zhao Jing(2017).The regression model of the degree of deposit competition and the size of shadow banking also uses the system GMM to examine the impact of deposit competition on shadow banking.At the same time,the heterogeneity effects of regulatory constraints on capital adequacy ratios and deposit-loan ratios that banks face are studied.The empirical results show that: 1.The increase in the degree of deposit competition has significantly increased the size of shadow banking.2.In the sample of banks with high capital adequacy ratios,this effect has been significantly enhanced,the lifting of the deposit-loan ratio constraint has somewhat reduce this effect.Finally,according to the results of empirical research,countermeasures against the expansion of shadow banking caused by competition.