The Impact Study Of Commercial Banks’ Shadow Banking Operations On Business Performance

Confronted with increasingly stringent regulatory constraints in recent years, the competitions of commercial banks’ traditional assets and liabilities operations are more and more vehemence. If only relying on the difference between the deposit interest rate and the credit interest rate, commercial banks could hardly to maintain the existing level of profits. Therefore, commercial banks are actively developing transformation strategies and converting the single profit model into diversified profit model of, in order to meet the needs of the market. With the purpose of improving business performance, commercial banks create lots of shadow bank operations which as an innovative addition to the traditional deposit and loan business have been rapid development and expansion.This paper, through research of the development of the listed commercial banks’ shadow bank operations in recent years, is intent to carry out whether the development of shadow bank operations in commercial banks could improve their performance and ultimately change profit model and promote service efficiency under the stringent regulatory environment and fierce financial market competition.Starting from the definition and classification of shadow bank, this paper gives the definition and characteristic of shadow bank operations, and the definition of business performance of commercial banks. How the shadow bank operations would promote the development of commercial banks business performance has been explained in this paper which based on the circumvention control theory, restraint induction theory and transaction cost theory. In this paper, I have drew lessons from the experience of domestic and foreign commercial industry strategy also refer to the relevant information, and assumed that the commercial banks’ shadow bank operations had impact on business performance. So the foundation for empirical analysis has been laid by these studies. In the empirical analysis part of this paper, I took the financial date of the listed commercial banks from 2007 to 2013 as research samples and made regression analysis to shadow bank influence on business performance by Eviews 6.0. The results show that there are no significant positive correlation between the revenue of commercial banks’ shadow bank operations and business performance, there are no significant positive correlation between the revenue of commercial banks’ shadow bank operations and the next period business performance, there are significant positive correlation between the revenue of commercial banks’ shadow bank operations and the next period business performance in third and fourth year. The impact of commercial banks’ shadow bank operation on business performance exist hysteresis effect. In the end of paper, I put forward some suggestions about how the commercial banks making use of shadow bank operations to improve business performance. These recommendations could help commercial banks prove their own sustainable development through the rational development of shadow bank operation, so as to promote the healthy development of financial market. And caution the hidden risks of overdevelop.