The Effect Of Chinese Shadow Banking System To Financial Stability And The Perfection Of Supervision Mechanism

After the 2008 financial crisis, the shadow banking attracted so much worldwide attention. The international community generally required to strengthen the supervision of shadow banking. Shadow banking as a product of financial innovation, reduces cost, expands financing and risk diversification, efficiency and other aspects,it plays a major role, but it often uses highly leveraged operations, product design complexity, the prevalence of the phenomenon and the maturity mismatch traditional banks closely linked, it is easy to conduct risk, systemic risk and the presence of risk.In recent years, the shadow banking develops rapidly in our country. For example, trust loans, financial products, underground banks and other forms of shadow banking in the financial system, becoming the social financing and traditional commercial banking system in parallel. And its impact on financial stability risks of shadow banking has become the focus of attentionThe paper defines China’s shadow banking concept according to the development characteristics of China’s financial system.It provides the definition of Chinese shadow banking system, by detailed description of the current situation and development of the root causes of the development of China’s shadow banking. In recent years, the rapid development of shadow banks, by the end of 2015, China’s shadow banking has reached nearly 43 trillion. 23% of the total social financing scale. Meanwhile, the paper also uses financial stability index for China’s financial stability. On the basis of this paper’s analysis theoretically shadow banking financial stability of the mechanism through positive and negative impacts both elaborated shadow banking financial stability of channels. Article Select variables shadow banking and financial stability index variables affect the empirical analysis on China’s shadow banking financial stability, the results show that China’s shadow banking development on the financial stability of the overall performance of the negative impact, and this has a negative impact. The conclusion also tells us that the shadow banking plays a very important role in the society.Finally, this paper uses empirical conclusions to accurately catch the formation mechanism and characteristics of the shadow banking, and this paper also construct a healthy regulatory system for the shadow banking, from the source to effectively control the risk of the shadow banking system to guide their walking work the real economic society and the financial stable system of the healthy track, in order to make sure that China’s financial system will grow healthy and quickly. To guide the healthy development of shadow banking in our country, to promote its healthy effect on the macroeconomy.