Research On Money Policy Transmission Risk And Practice Under The Influence Of The Shadow Banking System

The global financial crisis triggered by U.S. Sub-prime mortgage crisis spread far away continually. This paper discussed how to interpret and respond to the challenge for economic theory from the perspective of monetary policy transmission mechanism. We believed that the financial crisis was precisely caused by financial deepening problems which were triggered by monetary policy transmission mechanism under the influence of shadow banking system. Using the relative economic theory the thesis from a different perspective analyzed the monetary policy transmission mechanism and the relative supervising problem, influenced by the new system which paralleled the bank system, aiming to learn a lesson from the crisis. The paper was unfolded in a line of four parts:derivation of Economics, generalization, certification and conclusion. In the part of model derivation, based on the general theory of the shadow banking system, the author gave an introduction of the risk transmission mechanism of monetary policy, with focusing on the model and the corresponding conduction process. In the part of generalization, based on the description of the risk process and the analysis of the undertaking risk which triggered by the innovated product in the shadow bank system and the transparency of information disclosure, combined with the experience of monetary policy transmission, we summed up risk issues of monetary transmission under the influence of the shadow banking system. In the part of certification, the paper first described the situation of innovative products and rating agencies, and pointed out the deficiencies of the financial regulation system from the perspectives of costs and benefits through the game theory.In the part of conclusion, from the traditional monetary policy transmission, monetary policy transmission influenced by the shadow banking system and the practice of monetary policy transmission from domestic and abroad, we presented a summary of the risk of regulatory issues and make recommendations, in order to improve the traditional monetary policy transmission mechanism, make full use of market resources and the capital market system, playing the role of the transmission channel of risk price; and to strengthen the innovative products and rating agencies.On the basis of lessons learned from the financial crisis, the paper concludes that in order to prevent the breakout of similar crisis, we should reform and strengthen our financial supervision system and focus on the diversification of risk price in several aspects:to establish a unified settlement of securities trading centers; to enhance the transparency of information disclosure; to expand the scope of regulation; to cancel the consulting services to the issuer of rating agencies; to supervise the rating agencies under the Securities and Exchange Commission.