Shadow Banking Liquidity Creation And Its Influence On The Stability Of Commercial Banks

On the basis of research findings of domestic and foreign scholars about shadow banking credit mechanism,this dissertation analyses shadow banking liquidity creation and its channels and effects of the stability of commercial banks,and puts forward the corresponding policy recommendations.The traditional credit relationship was hidden in new financial instruments in order to achieve the expansion of credit and liquidity creation.Creating liquidity is an important function of the shadow banking.This study defines the shadow banking as shadow banking business closely related to commercial banks from the perspective of operational activities,which belongs to the category of narrow shadow banking.This dissertation firstly analyzes the liquidity creation mechanism of shadow banking standard business and non-standard business mode by balance sheet method,and finds that in the mode of standard business,mortgage deduction rate and asset securitization are negative correlation with the level of economic growth and shadow banking liquidity creation scale,liquidity cost is positive correlation with economic growth and the shadow banking asset securitization products.In the mode of non-standard business,the liquidity creation capacity of shadow banks is positively related to the reserve discount rate of shadow banking,and negatively related to the loan interest rate of shadow banking.Money created by shadow banking distribute in various levels of modern monetary system.The stability of modern monetary system is affected by the leverage of shadow banking liquidity creation.In the process of shadow banking creating money,commercial banks are the main counterparties and important trading products for the shadow banks to create money,and provide the monetary base The speed of the creation of shadow bank liquidity is affected by economic growth,monetary policy,market concentration,interest rate marketization and supervision intensity.The liquidity creation of shadow banking mainly affects the stability of commercial banks through liquidity channel,leveraged channel,profitable channel and risk taking channel.The liquidity channel shows that the liquidity created by shadow banking has buffering and expansion function on the liquidity of the commercial bank system under the premise that the underlying asset value of the shadow banking products is stable.Impact effect is reflected that shadow banking system diverse commercial bank liquidity and the its liquidity risk impact the liquidity stability of commercial banks.The other three channels are:the expansion of the shadow banking liquidity reduces the stability of commercial banks through increasing the leverage of commercial banks.The expansion of the shadow banking liquidity creation business is conducive to the increase of the profitability of commercial banks and increases the stability of commercial banks.The expansion of the shadow banking liquidity creation business increases the bank insolvency risk and non-performing loan ratio,and promotes commercial banks to assume greater operational risks and reduce the stability of commercial banks.Commercial bank stability index system is consist of four aspects of bank liquidity,capital adequacy,asset quality profitability,and factor analysis method is used to calculate the quarterly data of 2006-2016 commercial bank stability index in this study.The result of empirical analysis shows tha the speed of the expansion of the shadow banking liquidity causes the decline of the stability of commercial banks.This dissertation suggests that supervision departmen should construct diversified financial system,comprehensive and flexible macro prudential regulatory framework and targeted and precise supervision for the shadow banking,and supervise shadow banking credit creation process affiliated with commercial bank,deepen financial reform,improve and perfect financial market risk pricing mechanism and financial system and self repair mechanism,promote the financial innovation and business model innovation and risk management of commercial banks.The main contribution of this dissertation lies in the following points:First of all,starting from the perspective of liquidity of shadow bank,which is helpful to study the core function of shadow banks.Through combining the liquidity created by shadow banking and economic growth,modern monetary system stable and commercial bank,this study expands the study view of the shadow banking liquidity creation.Secondly,This study analyzes the hierarchical structure and stability of money creation by shadow banking in China.According to the maturity mismatch management ability of shadow banking and payment ability and intrinsic value of money created by the creation of money,the modern monetary system is graded.Money created by shadow banking distribute in various levels of modern monetary system.The stability of modern monetary system is affected by the leverage of shadow banking liquidity creation.In the process of shadow banking creating money.Thirdly,shadow banking and commercial banks are two relatively independent research field,the current literature about the relationship of shadow banking and commercial banks mainly analyzes the influence of bank stability index,and is less interested in the influence mechanism between the two.This dissertation analyzes four channels of liquidity,leverage,profitability and risk taking of the influence mechanism,and has carried on the empirical analysis.These are supplement to the existing research.Finally,the supervision strategies of shadow banking liquidity creation and related risk of FSB,America,the European Union and China were compared and analyzed.The existing research is mainly focused on the overall regulatory framework of shadow banking.Comparative analysis is helpful to deepen the existing research on the liquidity of the shadow banking regulatory policies.