The Stability Of The Banking System Of Shadow Banking-scale Studies

After2007subprime crisis shadow banking has been a focus of economic research and discussion, and its scale continues to expand with off-balance sheet operations. This trend intensifies quickly. It is system vulnerabilities and external finance demand that makes the development of shadow banking in China inevitably. In recent years, the rapidly developing shadow banking has been an important part of the financial system of our country that cannot be ignored. The shadow banking system of China’s has a significant impact on commercial banking system in both positive and negative side. Therefore, the research on the shadow banking system’s influence on the stability of China’s commercial banks has important reference value that it will run and develop our commercial banking system as well as the balance and stability of the entire financial system.In this paper, I have comprehensively and systematically analyzed the negative and positive effects of the shadow banking on the stability of the banking system in china with the qualitative and the quantitative analysis. Then, the thesis uses nonlinear regression model to value the influence of Chinese shadow banking scale on commercial banking stability from2002-2012. The empirical results show that the relationship between the two is not simply to promote or hinder. Therefore, we should treat shadow banks objectively, we cannot condone its free development, nor restrict and suppress excessively, but guide its legalization. The establishment of the shadow banking supervision system will improve disclosure requirements to enable them to enhance our banks’long-term stability and long-term development of the national economy system.