Study On The Effect Of China’s Shadow Banking Financing On Small And Micro Businesses

In recent years, Small and micro businesses are becoming more and more important in our national economy. It promotes growth of our country economy, economic transition, provide jobs. However, due to the small micro enterprise are more weakly than large and medium-sized enterprises on management system, financial system, its size, the ability to withstand market risks and other aspects, financing difficulty has hindered the development of small enterprises in our country. After the global financial crisis, the shadow banking has become a new concern in international financial field, From the beginning of 2010,According to the relevant statistics by the end of 2013 the total scale of China’s shadow banking capital has reached37.7trillion yuan, accounting for about 66% of GDP. Scale scholars generally believe that the rapid development of shadow banks promoted the prosperity of financial market, but also laid great dangers in the security of the global financial system.Through the study of China’s shadow banking development in recent years, we can find that, China’s shadow banking development is closely related to the Small and micro businesses financing problem. The Small and micro businesses will affect the cost of financing, financing channels and financing environment. The time series data from 2010 to 2014, based on the empirical research, selection of Chinese shadow banking scale, the provisions of the central bank’s 1 year lending rate, the balance of small micro enterprise loans accounted for the bank’s loan balance ratio, M1, as the observation index, to construct the VAR model shows that, Shadow banks on the development of our Small and micro businesses financing is a "double-edged sword". on the one hand, the shadow banking as a supplement to traditional Chinese financial institutions, which makes the Small and micro businesses diversified financing channels and provide funds for the acute, can partially compensate for the liquidity risk’s macroeconomic adjustment; on the other hand C hina’s shadow banks, expansion of scale, will dilute the commercial bank credit creation function to a certain extent, inhibited the increase in money supply, increased the difficulty of the small micro enterprise financing cost and financing. At the same time, the short-term bank loans interest rates rise, will increase the Small and micro businesses financing costs in the short term, and push forward the process of marketization of interest rates in the long term, improve the financing environment of Small and micro businesses.Thus, we can further guide and sta ndardize the development of shadow banks, shadow banks should play the positive role in small and micro businesses financing, while controlling its scale and risk effectively, guarantee the stable operation of China’s financial system. In order to further play the role of shadow banks, to alleviate our country Small and micro businesses financing dilemma. First of all,to promote the Small and micro businesses credit system construction, smooth docking channels to solve the problem of information asymmetry; secondly, we should accelerate the growth of non bank financial institutions, improving the financial structure layout; again, should be clear about the private lending regulatory body, and guide its healthy development; finally, by encouraging the financ ial innovation, explore diversified financial products and services Small and micro businesses financing, strengthen the financial support. C hina’s shadow banking supervision, to establish the functional regulatory philosophy, based on the improvement of financial supervision laws and regulations system and information disclosure system, and uses the internal control mechanism of strict precautions against the risk,this is the route one must take the healthy development of shadow banks.