The Effects Of Shadow Banking Credit Creation To Leverage Of Enterprise Sector

The shadow banking is an important dimension of understanding the modern finance.In recent years,the development of shadow banking in China is unprecedented.During this period,all kinds of financial innovations are constantly arising.Both scholars and regulators are concerned about the healthy development of shadow banking,and stand on their respective perspectives to evaluate the advantages and disadvantages of shadow banking.However,the complex financial structure of the shadow bank makes it not easy to judge,and it needs to be systematically studied both in theory and in practice.This article will try to study the basic proposition:whether the credit expansion of the shadow bank is an important cause for the structural rise of the corporate sector's leverage ratio.Through theoretical and empirical research,it is concluded that the credit expansion of the shadow bank raises the leverage ratio of the high-risk enterprises,but reduces the leverage ratio of the low risk enterprises,which leads to the structural feature of the leverage ratio of the enterprise sector.In order to study this basic proposition,we combine the literature and systematically analyses the definition,characteristics,operation mode of shadow banking(pass-through channel and fund-asset pool channel).We decomposes the total scale of shadow bank from two aspects,and the same time,when the enterprise become the suppler and demander of shadow bank,we had discussed the micro mechanism of the effect of shadow bank credit expansion on the leverage ratio of the enterprise sector from the two angles and put forward three hypotheses.As a supplier,by configuring financial assets,there are two different effects,the surplus effect and the substitution effect,on its leverage ratio.As a demander,there are two microcosmic paths for the effect of the credit expansion of the shadow bank on the leverage ratio: one route is that the shadow bank funds are rotated in the financial system and the fund is not enter to enterprise,which have no influence on the leverage ratio;another route is the shadow bank raises the financing cost by lengthening the chain bar and the fund is finally Enter to enterprises,which has pushed up the leverage of high risk enterprises and show the accelerator effect.The theoretical analysis shows that shadow banks raise the leverage ratio of high-risk enterprises and reduce the leverage ratio of low risk enterprises.This basic conclusion will be elaborated from the empirical study.Firstly,shadow banking has the characteristics of pro-cyclical and counter-cyclical coexistence,while bank credit is pro-cyclical.The Grainger causality test shows that there is a mutual forecast relationship between the shadow bank and the commercial bank,which indicates that the shadow bank has a close relationship with the bank credit,and the interbank business is an important manifestation of the credit expansion of the shadow bank in the table,and the rapid rise of the same industry assets has a certain substitution for the bank credit.The positive fluctuation of a unit of bank credit leads to the negative fluctuation of the size of the shadow bank,while the positive fluctuation of the size of a unit shadow bank leads to the positive fluctuation of the bank credit.Secondly,as demander,we had test the accelerator effect.After test the2009-2016 years' macroscopic data and use Bayesian VAR model the result of impulse response show that giving the positive impact of the fluctuation of one unit interest rate or interest rate or contraction,the economic growth rate,consumption,investment and corporate profit margin decrease significantly and the leverage rate rises,which is consistent with the debt deflation theory.By the type of enterprise,high-risk and low-risk of corporate leverage will rise in tightening monetary policy conditions,and high-risk enterprises leverage rise slower than low-risk enterprises,which is related to the lower leverage of low-risk enterprises itself.But this growth lasted for only a year,and the leverage of high-risk enterprises continued to rise for three years.One reason is that the profits of high risk enterprises decrease a lot(1.2%,0.9%),and the duration is longer(1 years,0.5 years).Another reason is that loan interest rate of the shadow bank rise,the size of the shadow banking over-adjustment,which is attributed to the interest rate of commercial bank lending rates rising.The commercial banks choose to increase bank credit and reduce the size of the shadow banking decision channel.After half a year,the bank loan interest rates began to decline,the capital investment reduce and the profits rise,which forming a structural feature of leverage for the low-risk corporate leverage to decline first.Thirdly,what benefits of the financial innovations.This paper reorganized the corporate balance sheet.From the perspective of financialization of non-financial enterprises,it was analyzed that enterprises provide funds for shadow banking by configuring financial assets to obtain excess financial returns,which helps to reduce leverage.After analysis the balanced panel data of 2232 listed companies and the issue of non-listed company in 2007-2015,we found that listed companies to improvethe allocation of financial assets to reduce leverage plays a positive role,and the financial behavior basically is "surplus effect" or "surplus effect" and "substitution effect" coexistence.But the non-listed company to improve the financial asset allocation will have the negative effects for reducing the leverage,and its behavior characteristics are basically "substitution effect".On the whole,we should affirm that shadow banking can provide a large number of financial products for enterprises and improve the positive role of corporate profits,but do not exclude the allocation of financial assets by individual businesses by adding leverage.One by one of the above problems,according to the research conclusions,we will put forward the policy suggestions: Firstly,it is more difficult to decrease the leverage in view of the complicated financing structures,so we proposed the phased implementation measures to leverage.Secondly,regulate the shadow banking development,return to the essence of asset management,thoroughly the internal and external business risk isolation,improve asset management to reduce the size of active management,channel business,prohibition of fund-asset pool channel,through and extend the product period,separate accounts,separate accounting,value management.Thirdly,the commercial banks should strengthen the use of loan and strictly control the corporate to pursue the high returns of the financial asset for idle funds behavior and prevent the potential risks of financialization.At the last,we suggest to develop direct financing and reduce the burden of enterprises.