Analysis Of Shadow Banking How To Influence China’s Commercial Bank Profitability

Since the US subprime mortgage crisis in2008, domestic and foreign scholars began to pay close attention to shadow banking. The growing commercial banks business rise the attention of people to the term shadow banking, Under the process of China’s interest rate marketization, the commercial banks of our country will be first affected by the rapid development of the shadow bankingThe concept of shadow banking was first put forward by Ingram, a professor from the university of Cambridge. Shadow banking concept proposed although only12years, but it is history there have been hundreds of years, and even can be said that the history of shadow banks as long as commercial banks. Literally see shadow banking can be divided into the shadow and bank the two words. why is the shadow, it is outside the traditional banking system, in the position of the unofficial. Why it is called the bank, because it can serve as a medium of financing functions between saving and investment. so the development of the shadow banking is inseparable from the commercial banks. Commercial bank is an intermediary of a country’s currency creation, the government through the commercial banks implement the regulation of monetary policy, the stability of the commercial banks and the country’s financial system stability, the normal operation of national economy and social life of the residents to live and work in peace and contentment is very close. So the research on the relationship between the shadow banking and commercial banks is very important.This paper mainly studies the shadow banking of commercial banks business profitability. Shadow banking both in positive and negative affect commercial banks operating profit activities. On positive shadow banking increased the proportion of commercial banks in the middle, and effectively supplement the deposit and loan business of commercial banks, alleviating the financing contradiction, promoting economic growth, increasing employment, maintaining social stability, and thus to improve the whole synergy and development of the commercial banking system. Shadow banking activities of the negative influence in the commercial bank first embodied in the traditional business of commercial bank the amount and structure of the impact, the second limiting the traditional business of commercial bank’s bargaining power, influence its economic benefits.This article expounds the concept and characteristics of shadow banking on the basis of studying in front of the shadow banking at home and abroad were reviewed and compared, and then we define domestic shadow banking and measure from2008to2012shadow banking scale in China, empirical study on the size of the shadow banking changes impact on profitability50commercial Banks in China. We select the total return on assets as a commercial bank profitability indicators, index data time span for five years, Through the inspection, we adopt fixed effect model to assume that the linear regression model. According to the results of empirical analysis, the scale of the shadow banking change will improve the commercial bank profitability, but this influence there is a delay.This article writing framework is as follows:The first part is the introduction of this article, this part mainly introduces the paper selected topic background, significance, innovation and inadequate. Starting from the present situation of the shadow banking, based on the problems caused by the shadow banking, then discuss this article research significance.The second part is literature review, this part mainly includes the theory of shadow banking and commercial banking profitability. Domestic and foreign scholars on the definition of shadow banking can be summed up in two aspects:One, determine the shadow banking from financial institutions or non-financial institutions a business have regulated. Second, from three aspects to divide the shadow banking, institutional level, business level, tool level. Commercial bank profitability research focuses its influence factors is macro market factors, industry factors and microscopic factors within the bank. methods commonly used data envelopment analysis (DEA) and stochastic frontier analysis (SFA).The third part is on the basis of the second part, specific analysis of the current development of China’s shadow banking, the main part of the shadow banking and calculate the total scale of China’s shadow banking. Based on the generalized shadow banking in China will be defined as a bank functions in the social credit non-banks and did not include off-balance-sheet banking regulation. In the narrow sense shadow banking summarized as bank off-balance-sheet financing product, entrusted loans, trust loans, commercial banks accept no discount bank draft, folk financing and so on. We use social not observing the scale to represent our country folk financing, and uses Li Jianjun (2010) method from the angle of the borrower to measure not observing the credit scale of Chinese societyThe fifth part is the empirical analysis, this part is also the most important part of this article. through the current representative50domestic commercial banks in2008-2012data, establish the size of the shadow banking panel data model and the relative amount of profit between commercial banks and analyzed based on empirical results. We concluded that the result is the size of the shadow banking changes of the total impact on commercial bank profitability has certain time lag.The sixth part is given based on the empirical general conclusions, and from government regulation, banking sector development and reform, training of financial personnel policy and put forward relevant proposals.