Research On The Influence Led By Shadow Banking Exerts Upon Commercial Bank Stability In China

After the2008financial crisis, the shadow banking has become a focus of economicresearch. because its scale expands constantly, its form changes so fast and the shadowbanking has the trend to develop sustainably. In essence, the shadow banking is a kind offinancial innovation, is the multi-level need of national economic development, it reflects thefinancial system drawbacks and the lack of financial regulation. The rapidly developingshadow banking has an impact on our commercial bank stability, even in the future will stirthe whole financial market and cause the systemic financial risks. In recent years, thedeveloping shadow banking has been an important part of the financial system of our countrythat cannot be ignored. Therefore, through the studying of shadow banking. we canunderstand the operation and the development of shadow banking in China, in order to keepthe stability of our banking system and even the whole financial system.This paper combined with the actual situation in our country, using the combination ofqualitative and quantitative method to summarize the shadow Banking and stability ofcommercial banks in China, and to measure the scale of the shadow banking and commercialbanking stability. Then, the thesis uses nonlinear regression model to value the influence ofChinese shadow banking scale on commercial banking stability from2002-2014. The resultsshowed that the relationship between them is not simply promote or hinder. So, we shouldtreat shadow banking objectively, if the scale is in the certain range, it plays a significantactive role in the financial market, but we should not neglect its development, we mustpromote it gradually transparently and legally under certain regulation. Our country shouldadapt to the trend of market development, help the healthy functioning of shadow bankingand promote the long-term healthy development of economy of our country.