Research The Effect Of Chinese Shadow Banking System On Economic Development

In 2007,the concept of the shadow banking was first proposed, it mainly refers to the traditional commercial bank which is able to supply such as financing and credit, exist outside the regulatory system of the credit system. In 2007, the global financial crisis involving a number of countries and regions, its origin is from the shadow banking system which has all kinds of connections with traditional commercial banks, it means non-banking financial institutions, which is free of the regulatory system, but provides similar functions with the traditional commercial banks, providing credit and financing. Compared with the western developed countries, the shadow banking in China started late, so the degree of asset secularization is quite low in China. But with the development of economy and continuous increase demand of currency, China’s shadow banks also obtained a rapidly increasement. The development of the shadow banking system, provide a variety of investment products, solved the financing difficulty of small enterprises effectively. But the system itself also has many defects and risks, may influence the stability of the financial system and national monetary policy implementation results. Base on this, this thesis try to research the positive economy effect and negative economy effect caused by shadow banking both in qualitative and quantitative way comprehensively. The first part of this paper briefly introduces the background and research significance of this topic, the research methods and ideas, innovation points and inadequate points. The second part makes a complete and comprehensive overview of the shadow banking. First is about the study of the shadow banking concept of domestic and foreign scholars, then expand and introduce the extension of shadow banks, and analyze the development status of Chinese shadow banking, and make a contrastive analysis about the development and the status of shadow banks on both at home and abroad, summarized the Chinese shadow banking coverage and make a measurement of the shadow bank scale. The third part is the core part of this thesis. The growth of the shadow banking on the national economy and the impact on monetary policy were studied in both qualitative and quantitative ways, the results of the study show that the growth of the national economy promotes the development of shadow banks, but no significant effect on the price level, only influence the volume of money supply weekly. But the economic growth and the reduction of money supply will promote the development of the shadow banking. The fourth part, in view of its existence risk and the negative influence, put forward a sound monetary policy and strengthen the financial supervision suggestions.