Study On The Cross-Correlation Effect Of Shadow Banking Business

In the context of deepening financial innovation,shadow banking institutions and business have emerged,and continue to grow and develop.At present,the shadow banking system has become an important power which can't be ignored in the financial industry and there is a close link between the shadow banking system and other financial institutions.What's more,there is a lot of internal connection between shadow banking and business.In the long-term development and cooperation,the shadow banking system formed the funds,equity and other multi-channel cross-linking mechanism among apartments.These cross-linking mechanisms,while promoting the increase of shadow banking institutions and business returns,also improve the possibility and harm of the internal risk of shadow banking system.On the basis of summarizing previous studies,this paper first classifies the shadow banking institutions and business in China,including the shadow banks dominated by commercial banks,non-bank financial institutions,and private finance.Then,this paper summarizes the three kinds of shadow bank cross-correlation mechanism,namely:cross-correlation mechanism of funds,equity and guarantee compound mechanism,and cooperative mechanism of commercial banks and non-bank financial institutions.The internal risks of all kinds of shadow banking institutions and business are cross infected through the three channels,and then form systemic risk,and even lead to financial crisis.Based on the data of China's shadow bank from January 2006 to January 2017,the VAR model was established.The cross-correlation between the four kinds of shadow banks,namely:entrusted loans,trust loans,uncollected bank acceptance bills and small loan company credit are empirical tested.The results show that before the outbreak of the financial crisis,the relationship between China's banking institutions and business is significant.After the financial crisis,a large number of correlation effects were cut.At the same time,the empirical results also found that the effect of the regulatory measures for China's shadow banking system are not obvious,still need to be targeted to adjust.Based on the analysis of empirical results,this paper divided the financial subject involving shadow banking system into three categories:supervisors,commercial banks,and non-banking institutions According to the different characteristics of different types and different roles,this paper gives the corresponding risk control strategy.This paper also puts forward the specific risk control strategy for the healthy development of financial market.As a means of financial innovation to circumvent supervision,the shadow bank should weaken the risk cross-infection effect through the coordination and supervision of the regulatory body,the isolation of the risk of the commercial banks,the enhancement of the self-discipline consciousness by the non-banking institutions and the deepening of the reform of the financial market,which can promote the healthy development of the shadow banking system.