The Influence Of Chinese Shadow Bank On Monetary Policy

After the financial crisis, the shadow banking risks have become the focus of the world’s financial industry system, the impact of China’s shadow banking on monetary policy has also attracted attention at home and abroad. Non-bank financial institutions develop rapidly, the transfer of the function of the financial intermediary of some banks, as a substitute for the formal financial. The proportion of direct loans in commercial banks in the total amount of social financing is lower and lower, and the traditional financial market structure has undergone profound changes. At present, the shadow banking has become an important factor affecting the operation of macro and micro economy in China. Shadow banks are essentially part of the exercise is similar to traditional banking functions, such as the creation of credit agency, credit, liquidity and maturity transformation, expanding lever, part of the tool has monetary attribute, to provide liquidity to the market, but this has not been financial regulatory authorities and effective supervision, which will interfere with the implementation of our quantitative monetary policy tools, the ultimate goal of monetary policy implementation. Therefore, the study of this problem is of theoretical and practical significance for the prevention of financial risks, the stability of the financial system and the central bank’s monetary policy.In this paper, qualitative analysis and quantitative analysis are used in this paper. In the system of reviewing the literature of related outstanding research results in the foundation, this thesis firstly to shadow banking and systematically introduces the definition of the shadow banking system in China, and in-depth analysis of the influence of the transmission mechanism of the monetary policy of our country and our shadow banking system on the transmission of monetary policy. Then, this paper uses a vector autoregressive VAR model of quantitative empirical analysis, through the VAR model is established, and on this basis, using Granger causality test, co integration test, impulse response analysis method, from the perspective of empirical study effect of China’s shadow banks to the monetary policy system. Finally, the corresponding policy recommendations are put forward to the results of theoretical and empirical analysis.In this paper contains shadow bank scale, the M2 measure of money supply. GDP and price level CPI, VAR model, and using the Granger causality test, co integration test, impulse response analysis method, empirical analysis of the effects of China’s shadow banks on monetary policy intermediate goals and final goals, get the following conclusions: first, the impact of money supply as the intermediate target from the shadow banking, mainly for the shadow banking and currency creation effect, increase the supply of real money, the influence of shadow banks of the broad money supply have been more obvious. Second, from the shadow banking on the impact of the ultimate goal of monetary policy point of view, the shadow banking on economic growth, price stability of two final goals have significant impact. Expansion of the size of the shadow banking led to an increase in the real money supply, while promoting the sustained growth of the economy, but also to a certain extent, exacerbated by inflation.Based on the results of theoretical and empirical analysis, this paper proposes the following policy recommendations:first, adjust monetary policy; second, expand the scope of regulatory policy; third, strengthen investigation and statistical data, broaden the scope of monitoring; fourth, accelerate the process of marketization of interest rates; the fifth, reasonable guide financial innovation; the sixth, standardize commercial banks and shadow banking system business dealings...