The Influence Of The Shadow Business Of Commercial Bank On The Monetary Policy Credit Transmission Mechanism

In recent years,the development of the shadow bank business is rapid,represented by the inter-bank business and financial management business.While the traditional bank business,has been largely constrained.From the year of 2014,the central bank cut interest rate and deposit reserve many times,but the effect of the easy monetary policy is not as expected,the development of the shadow bank business have negative impact on the monetary policy transmission channel,and then affect the real economy.Based on the theory of monetary policy transmission mechanism,from the perspective of commercial banks' operations on shadow business.By carefully defining the concepts “Bank Shadow”,and “Commercial Bank Shadow Business”,there are some differences between China and the other Europe and America.China's shadow banking dominated by commercial bank,“Bank Shadow” is an important part of China's shadow bank.According to the cause of the “shadow”,we can classify them,then find the problem.To summarize the basic characteristics of shadow business in China.Next,I analyze the reality of China's monetary policy credit transmission channels.In China,the bank credit still plays an important part in social finance,the monetary policy tools are still increasing and it's gradually changing.By using 19 commercial banks from 2009 to 2016,I did an empirical research from the bank micro-perspective using fixed effect,random effect and two stage least square(2SLS)model,the results show that the development of the commercial banks shadow business represented by inter-bank business and wealth management business weaken the monetary policy effectiveness,namely monetary policy credit transmission channels due to the interference of shadow business is not smooth.Funds have been idled between financial institutions and not actually invested in the real economy.Due to the above results,it is proposed to improve the monetary policy framework,strengthen the supervision of the macro-prudential supervision of the Bank Shadow business,and guide the commercial banks to promote the financial innovation step by step.