Research On The Influence Of Shadow Banking To Our Country’s Financial Stability

In recent years, the fast development of the shadow banking in China, to a certain extent, promote the development of macro economy.But it also affacts the Financial stability. From the perspective of objective rationality, the paper analyzes the development of the shadow banking in China how to impact the financial stability and how much the influence is.This paper firstly introduces the main forms of the shadow banking, the main reasons for the development of the shadow banking and the difference between shadow banks of China and the United States. We find that bank and trust play an important role in the shadow banking system. Then this paper introduces the connotation of Financial stability, and then we construct our country’s financial stability index, and then we analyse the impact of shadow banking on financial stability from four aspects, for example,the shadow banking with the macro economy, the shadow banking with financial markets, the shadow Banks with the commercial banks and the shadow banking with macroeconomic regulation.Then we emphatically analyze some forms of shadow banking that are smaller but having big development potential and risk potential.Then this paper uses the VAR model and its related inspections to study the affect of different types of shadow banking to financial stability index in our country such as bank of unguaranteed financial product, trust products, entrusted loans, not discount bank acceptance.Through a series of analysis,the paper find that the shadow banking products from commercial banks have the biggest effect on financial stability, trust assets with its large size have less effect on the financial stability with a lag. Finally, according to the results of theoretical analysis and empirical analysis, the article puts forward that the present shadow banking is still in the primary stage of development, its risk is under control, so the government should encourage the development of the shadow banking, so they can play a role of its financial services to the real economy, at the same time, the government should speed up the legislation construction, system construction and crisis response mechanism to guide and standardize the development of shadow banking.