The Influence Of Shadow Banking On The Credit Transmission Of China's Monetary Policy

In our country,with the deepening of interest rate liberalization reform,financial innovation is booming,and shadow banking has developed into a financial force that cannot be ignored.There is no doubt that shadow banking has played a positive role in providing financial support to small and medium-sized enterprises,but since shadow banking has been outside of regulation,and recent studies have shown that the channel of credit transmission has not achieved the desired effect,so to explore the shadow banking impact on credit transmission channel of monetary policy and put forward relevant policy Suggestions is an important task in the present study,and is also necessary to consider when implementing monetary policy by central Banks on the one hand.Therefore,this paper also studies the influence of shadow Banks on monetary policy credit transmission and credit transmission effect.On the basis of domestic and foreign achievements,this paper mainly studies from the following aspects: One is based on that the shadow Banks can change the credit market supply,and can be as a kind of alternative financing change credit market demand,at the same time,the demand side and supply side of credit markets incorporate shadow Banks into the CC-LM model to construct theoretical models,and analyzes the effect of the shadow banking on strengthening the expansionary monetary policy and weakening the contractionary monetary policy effect.Second,on the basis of the theoretical model and combined with other factors that affect the credit scale,using a state space model with time-varying parameters,the effect of shadow banking on the scale of credit in China is verified empirically,the research indicates that shadow Banks will strengthen the effect of expansionary monetary policy and weaken the effect of contractionary monetary policy.The third is that the shadow banking system mainly affects the credit scale,in turn,effects on output and inflation.Therefore,the paper uses the error correction model(VECM)to further explore the effect of shadow banking on the output effect and the inflation effect of China's monetary policy.The results show that the shadow banking generates more output and increases inflation by acting on the channel of credit transmission of monetary policy.The fourth is to summarize the main resultsobtained from theoretical and empirical aspects.Finally,from the perspective of improving the monetary policy credit transmission target system,shifting the monetary policy tool from the quantitative model to the price type,strengthening the supervision and strengthening the internal management of the shadow bangking,the paper proposes a good policy suggestion which is beneficial to the credit transmission mechanism of monetary policy.This paper mainly discusses the relationship between shadow banking and the credit transmission mechanism of monetary policy using literature research,model analysis and econometric analysis,and innovations are made in the following two areas:One is to improve the CC-LM model from the credit market demand side,because under China's current financial system,all kinds of enterprises can view shadow banking funds as an alternative financing method,the emergence of shadow banking does not only affect the supply of funds,but also increases the demand for credit.Secondly,in the empirical research,the influence of shadow banking on the transmission mechanism of monetary policy is studied using the state space model with time-varying parameters.The model can describe the dynamic effect of shadow banking on the credit transmission mechanism and overcome the defects of fixed parameter model.