The Research On Credit Creation Of China's Shadow Banking System

Shadow banking began to appear in 1980 s.After the outbreak of the global financial crisis in 2007,shadow banking has become one of the most popular field in financial.Since2009,China's shadow banking system based on trust industry and bank financing use regulatory gaps to survive,develop,and form a large scale.Shadow banking scaled up development to meet the complex and diverse,rapid growth of investment and financing needs.Foreign shadow banking system credit creation mode is mainly based on asset securitization,credit creation process is based on all kinds of derivative financial products packaged copy,recreate or with the emergence of a new derivative chain.Chinese shadow banking system credit creation still rely on traditional commercial banking system,asset securitization started late,has not been carried out on a large scale,and not cover all kinds process of derivatives and recreation.the credit creation function is similar to the commercial bank,the financing structure and financing mode is dominated by commercial Banks,mainly on indirect financing.But China's asset securitization market has maintained a strong momentum of development,the development of the shadow banking credit creation model will become the development trend of China's shadow banking credit creation.This paper based on the analysis of Chinese shadow bank credit creation mechanism,trying to grasp the development trend of the shadow banking and explore the shadow banking credit creation process,and put forward reasonable suggestions to promote healthy and stable development of the shadow banking.In this paper,China's shadow banking system is divided into two categories: one is the shadow banking financial institutions,the other one is the private lending shadow banking.The main research contents are as follows: Theoretically analyzing two types of shadow banking if there is a complete credit creation process,taking the bank-securities cooperation channel class business as an example to analyze the entrusted loan business and bills business credit creation process;selecting social financing scale of entrusted loans and other indicators as the size of the shadow banking to make empirical analysis,because of rapid growth in Chinese financial markets,entrusted loans provide with considerable scale of investment and financing,the proportion of the total size of the shadow banking Chinese is relatively large,can represent the development trend of the shadow banking system China;Using VAR model,impulse response function to analyze the influence of shadow banking credit creation on currency supply and GDP.The results showed that the shadow banking system of China can operate like a traditional commercial banking system to make credit creation;Shadow bank's credit creation in the long term will have a positive impact on the narrowly defined money supply Ml and the broad money supply M2.The shadow banking credit creation also has a certain effect on economic growth.the results of Impulse response functions show that shadow banking credit creation's effect is very obvious,in the short term the shadow banking on the real economy has negative effect,but in the long run,the shadow banking credit creation has a certain role in promoting economic development.If the private lending,security services and other indicators are also included in the shadow banking scale,the effect of credit creation may be more obvious.The development of China's shadow banking system has improved the efficiency of resource allocation in the traditional financial system,and alleviated the degree of financial repression.But in the development process also faces a series of potential risks;the use of single mode of financial supervision measures makes it difficult to carry out effective supervision.Therefore,China's current supervision pattern must reform,to speed up the quantitative transformation of regulation to the price regulation,and strengthen the supervision of international cooperation.The Central bank and financial regulatory authorities should review monetary policy tools to adjust money supply measurement framework,enlarge the coverage of the money supply.Rationally treat the shadow banking system,encourage financial market innovation,promote the competitiveness of the non-bank financial institutions,guide the healthy development of China's shadow banking system.