| The term "shadow banking" never finds its way to the public minds until the break of the global financial crisis in the year of2007. In the next few years, researches on "shadow banking" systems have been carried out in a thorough and meticulous manner both at home and abroad. Considering the current conditions of China and the uniqueness of "shadow banking" in our country, this thesis give a definition to "shadow banking" and mainly analyses the influence of shadow banking on the transmission mechanism of monetary policy.From government’s central regulation to indirect control, our monetary policy and national economy are in constant adjustment, with many flaws remaining unsettled and some phases still lagging behind. The emergence of "shadow banking" exerts further disruptions on reforms of monetary policy and hampers its effectiveness. Phenomenon like credit control circumvention, underground financial stealth and funding strand breaks are worsening off, blurring the testability and controllability of intermediate goals and their correlation with the ultimate goals. The operation of our monetary policy transmission mechanism is gravely affected. The effectiveness of traditional quantitative tools is also weakened, direct and indirect control manners like the statutory reserve ratio, rediscount, open market operations, or even interest rate instruments are all unable to effectively control the market liquidity. The implement of our monetary policy is further hindered, which makes it harder to adjust our economy through monetary policies. Therefore, China must conduct its monetary policy reform by keeping up with market demands and intensify efforts on improving the objectives, instruments and mechanisms of its monetary policy, thus building a reserve force for better economic adjustments. |
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