The Study On The Impact Of China 's Shadow Banking System Credit Creation On Monetary Policy Objectives

The U.S.subprime mortgage crisis triggered the global financial tsunami in2008,and in the course of the development and evolution of the financial crisis,shadow banking system has become an important driving force.After the financial crisis,many countries began to give attention to the research of connotation,scale,operational mechanism,the potential risks and regulatory research of shadow banking system.In recent years,China's shadow banking system developed rapidly,according to Moody's estimates,at the end of 2015,China's shadow banking system's asset growth rate of more than 30%,the scale of assets has reached 53 trillion.With the expansion of the scale of China's shadow banking systema,the scale of credit is also rapidly expanding,and then lead to rising domestic debt levels.According to the British “Financial Times” reported,at the end of the first quarter of 2016,China's total debt-to-GDP ratio rose to a record 237%,the huge shadow banking system credit has brought about a certain impact on the realization of China's monetary policy goals,while bringing higher financial leverage and various risk factors.Because there is no universality of the research on the concept of shadow banking system at home and abroad,thus there is no universally recognized and unified definition of the shadow banking system,so it is difficult to provide a clear analytical basis for the follow-up research.Firstly,the paper compares and analyzes the definition and connotation of the shadow banking system at home and abroad to sum up the basic elements of the connotation of the shadow banking system,that is credit intermediary,avoid regulation,risk and unsecured,than combined with the reality of China's shadow banking system to define the concept of China'sshadow banking system.Secondly,the paper analyzes the causes of China's shadow banking system from two angles of capital demand and supply,and expounds the current situation and development of China's shadow banking system;next,the paper focuses on two research section: on the one hand,we study the credit creation model of China's shadow banking system and measure the size of credit scale of China's shadow banking.At the same time,according to some scholars' research ideas and methods to measure the credit scale of the current shadow banking system.the second is to study the impact of monetary policy objectives,targets and final objectives from both theoretical and empirical aspects.Through theoretical and empirical research,we can draw the following conclusions:China's shadow banking system credit creation enhance the volatility of the basic money supply;revitalize the stock funds and speed up the flow of money,thus promote the increase of market liquidity;while promoting economic growth,it also promotes investment demand inflation and structural inflation;making it difficult to achieve both goals of stabilizing prices and economic growth.Finally,the paper puts forward relevant policy suggestions from two aspects:strengthening the supervision of China's shadow banking system and perfecting monetary policy.