Shadow Banking,Bank Credit And Economic Fluctuations

In 2008, the US subprime mortgage crisis triggered by the financial crisis shadow banking gradually coming into view. The crisis has made people aware of the shadow banking high leverage and maturity mismatches and other risks. The shadow banking supervision and oversight to become one of the major financial crisis. Therefore, the Financial Stability Board and other series of studies on shadow banking, and the introduction of relevant programs. However, due to the shadow banking presents different characteristics in each country, ideas and program of regulatory reform efforts are not the same. Thus, whether the shadow banking risk assessment and successfully reduced, whether the beneficial effects of the shadow banking can play to the limit, still need further observation and research. But the shadow banking has become the research focus of the global financial system, no doubt.Chinese shadow banking in the last decade has been developed to a certain stage, and gradually penetrated into every corner of the financial system. In this context, experts and regulatory authorities for the rapid development of the shadow banking, and had in-depth study of the shadow banking produce practical reasons, forms and mode of operation as well as the impact on the economy, to reduce the risk of shadow banking. Learn only the shadow banking system, effectively regulate the behavior of shadow banking and avoid regulation being empty, in order to guard against the risk of financial impact on the economy.This article first defines the scope of shadow banking. It noted that the study of this paper is the shadow banking commercial banking system. Secondly, to explain the motivation of the shadow banking development through dual financial structure theory and the theory of regulatory arbitrage. That is the interest rate under the background of two-track system, the rapid expansion of the main external manifestations of shadow banking in the form of financial products and interbank assets to promote the development speed of shadow banking. Meanwhile, the regulatory capital adequacy ratio, loan ratio constraints, commercial banks are limited to the direction of flow of credit, and so will the amount. Thus, the commercial banks to obtain loans from commercial banks do not lend to businesses, bypassing supervision by the shadow banking. Thus, the shadow banking commercial bank credit in fact complement and expand the supply of credit through financial innovation on the market. This is the focus of this study, that motivation is the result of the shadow banking commercial bank regulatory arbitrage. Paper chooses DSGE model to analyze the reasons for the rise of the shadow banking commercial bank is the result of regulatory arbitrage. Meanwhile, regulatory reform proposals put forward in order to maintain our financial stability and security.