The Research On The Influence Of China's Shadow Banking On The Financial Stability

With the continuous reform and development of the financial market in recent years,the financial structure of China has been improved.the shadow banking system to adapt to the needs of the financial market and expansion of development,to bring new vitality to the economy.As a product of financial innovation,its influence on financial stability has aroused widespread concern.In our country,development of shadow banking and the United States with other developed countries are different,which means that the impact of China's shadow banking mechanism and effect of financial stability is different from other countries.In this paper,the influence of shadow banking on financial stability is studied in the context of the dynamic equilibrium of the macro financial stability.Under the background of development and accumulation of shadow banking,this paper explores the characteristics and features of China's shadow banking,selects four indicators of financial asset prices and the level of credit assets of financial institutions to explain the stability of financial market in China,and have constructed a comprehensive financial stability index.with two VAR models,this paper separately examined the he effects of shadow banking on financial stability indicators and indicators of financial stability factors.The results of the study show that the fluctuation of China's shadow banking will impact the financial stability,and the increase in the relative amount of shadow banking will impact on the rise of interest rates in the short term,on the rise exchange rate and real estate prices in the long term,and will have a certain inhibitory effect on the relative scale of stock prices and financial institutions.Nowadays,China's shadow banking has the closest relationship with traditional commercial banking institutions.The relative amount of shadow banking has great influence on the scale of credit of traditional commercial banks,but has little effect on the prices of other financial assets.This article believes that based on the observation of existing data indicators,China's shadow banking industry has certain impact on the of the financial stability fluctuation,and has proposed some appropriate policy recommendations.