Research On The Effects Of Shadow Banking To Monetary Policy Transmission And Economic Growth In China

Under the background of rapidly developing asset securitization and continuously innovative financial derivatives, as a primary focus attracting attention from global regulators and investors, shadow banking shows a development scale of continued explosive growth. As a systematic financing mode, shadow banking not only plays a significant driving role in enriching corporate financing channels and promoting the development of real economy, but also sows the seeds of systematic risk. Therefore, reasonably monitoring shadow banking will help prevent systemic risk.Shadow banking is generated from financial liberalization and financial innovation. As China has further loosened control over finance and China’s financial products are further increased, the development of China’s shadow banking becomes rapider. At present, China is in the critical period of economic and social transformation, and the financial system is changing constantly. With the emergence of various financing tools, shadow banking will surely bring a significant influence on China’s economic development and monetary policy transmission in the future. Thus, the research and exploration of the influence of China’s shadow banking on the domestic monetary policy and economic growth is of great theoretical and practical significance.From the perspectives of the influence of shadow banking on both China’s monetary policy and economic growth, this article utilizes theoretical analysis and empirical test to objectively probe into the effect of shadow banking in China’s financial system and to seek the influencing mechanism of shadow banking on our monetary policy as well as the laws of economic influence, and puts forward policy suggestions for guiding shadow banking development, preventing financial risk and boosting financial stability and economic development. The content of the article is divided into five chapters.Chapter I:Introduction. In general, it briefly describes the research background, research objective and significance, main framework, research methods as well as possible innovation points and deficiencies, and reviews and summarizes relevant research literature.Chapter II:Analysis on development status of shadow banking. It first defines the concept and connotation of shadow banking, and briefly describes the development status and cause of shadow banking in China.Chapter Ⅲ:Relevant theories and analysis. It briefly describes the development status and cause of shadow banking in China, expounds relevant theories regarding the influence of shadow banking on the monetary policy and economic growth, and analyzes the action mechanism thereof. Besides, it also briefly describes the domestic regulation over shadow banking at present.Chapter Ⅳ:Empirical analysis on the economic impact of shadow banking. This chapter starts with model specification and data selection. It determines and researches the interaction model of shadow banking, monetary policy and economic growth through an analysis, and selects relevant effective data. Then, it carries out an empirical analysis. Through unit root test, co-integration test and the establishment of GARCH model and VAR model, it analyzes the influencing effect of shadow banking on the monetary policy and economic growth from an empirical perspective.Chapter Ⅴ:Conclusions and application. In accordance with the theoretical and empirical analysis in foregoing chapters, it draws corresponding conclusions, and then utilizes these conclusions to raise corresponding suggestions.On the whole, this article probes into the influence of shadow banking on China’s monetary policy and economic growth. It mainly combines theoretical and empirical methods to qualitatively analyze the action mechanism of shadow banking, and to quantitatively conclude the results generated by shadow banking. Therefore, the analysis results are of practically economic significance.