Research Of The Impact Of China's Shadow Bank On Regional Financial Stability

In recent years,China's shadow banking has developed rapidly and has become an important part of the financial system.On the one hand,shadow banking has provided a certain supplement to commercial banks in business,and met the financing and development needs of small and medium-sized enterprises.On the other hand,because of its low transparency,low regulatory coverage and the existence of regulatory arbitrage space,shadow banking brings great risks,especially for the vast territory of our country and the degree of financial and economic development in different regions.If there are great differences in the distribution of resources,the characteristics of shadow banking at the regional level and its impact on financial stability will also be different.From a regional perspective,it is of great significance to study the influence of shadow banking on financial stability,which is of great significance to maintain the orderly and healthy development of China's financial system.Firstly,based on the definition and basic analysis of the concept of shadow banking and financial stability,this paper expounds the influence mechanism between them in detail.Secondly,considering that the scale of shadow banking has a certain degree of concealment,It is difficult to obtain directly through statistical data,so this paper calculates the scale of shadow banking from the perspective of unobserved credit,and uses the composite index analysis method to analyze the commercial banks.This paper selects10 indexes from three aspects of financial market and macro economy,constructs a systematic risk index system of shadow bank,calculates the systemic risk of shadow bank with principal component analysis method,and combines the above data to measure the systematic risk of shadow bank.Then,we choose the method of comprehensive index of financial stability,and choose 10 indexes of macroeconomic,financial institution and financial market.This paper constructs the index system of financial stability,calculates the regional financial stability comprehensive index by assigning weight to each index,and analyzes its regional differences.On the basis of systematic risk and financial stability of shadow banking,the panel data of 31 provinces and autonomous regions of China from2006 to 2015 are adopted,and the threshold regression method is used.This paper analyzes how shadow banking affects financial stability.The results show that there is a significant threshold effect between the two.When the scale of shadow banking is smaller than the threshold,shadow banking can promote financial stability.However,when the scale of shadow banking is larger than the threshold,it will bring challenges to financial stability.In addition,the threshold regression analysis of east,west and west regions shows that there are regional differences in the effect of shadow banking on financial stability.The influence of shadow banking on financial stability is significant in developed regions,but not in areas where financial development is backward.Finally,according to this article,the influence of shadow banking on financial stability is not obvious.According to the above analysis,the relevant policy recommendations for the healthy development of shadow banking and the maintenance of the stability of the financial system are put forward.