The Impact Of Shadow Banking On The Credit Transmission Mechanism Of Monetary Policy In China

Shadow banking generally refers to financial institutions which are similar to traditional banks but are free from the regulatory system,such as trust companies,investment companies and so on.In recent years,shadow banking has made rapid progress,the main influencing factors are as follows: In 2008,4 trillion government investment,which was thrown out of the economic crisis,has activated the market economy;The procedures of loan approval for commercial banks are complicated,and SMEs have to turn to shadow banks when they face financing difficulties;In recent years,Internet finance and private lending have flourished,which not only activate the network and underground transactions,but also broaden the channels of private financing.Shadow banking has greatly promoted the growth of the national economy,and the manifestations of the market economy have become increasingly diverse and flexible.Besides these positive influences,the development of shadow banking has brought a negative impact that can not be ignored.Ordos private lending capital chain rupture,Liulin usury incidents and so on.Which all reveal that the development of shadow banks is not perfect,and the lack of financial supervision is the main reason.Monetary policy is an important means to carry out macro-control.By changing intermediate variables such as money supply and market interest rate,the economy can be "warmed up" and "cooled down",thus promoting the stability of the national economy.The transmission mechanism is regarded as the "channel" through which monetary policy can act on the real economy,mainly adopt rate of interest,rate of exchange,credit or other measures to transmit to the real economy.Without the smooth passage of this "channel",there can be no efficient implementation of monetary policy.However,China has not fully realized the marketization of interest rate,the underdevelopment of capital market and foreign exchange market,the indirect financing-based financial system make that credit transmission mechanism with credit quantity act as the main index.In recent years,the development of shadow banking has impacted the traditional formal financial structure,the quantitative degree of monetary policy is insufficient,and the transmission mechanism of monetary policy has become more uncontrollable,which will inevitably affect the implementation effect of monetary policy,thereby endangering the stability of the entire national economic system.In 1998,the central bank abolished the credit scale quota management,realized the marketization,and made monetary policy credit channel transmission more flexible.Therefore,the study of credit transmission mechanism,and make it more controllable,which is valuable.The size of shadow banks is an important reference variable for monetary policy adjustment,but also has an important impact on the smooth transmission mechanism,especially on the credit transmission mechanism.On this basis,this paper focuses on the analysis of the impact of shadow bank size on monetary policy credit transmission mechanism.At first,drawing on domestic and foreign scholars in the shadow bank and monetary policy credit transmission related research literature,pointing out the existing research results and shortcomings.Secondly,it comprehensively understands the development of shadow banks in China with the data of entrusted loans,trust loans and other related indicators.Next,theoretical and empirical studies on the influence of shadow banks on the credit transmission mechanism of monetary policy are carried out.Firstly,it points out the credit creation mechanism of shadow banks through theoretical analysis,combines the CC-LM model,financial accelerator theory to analyze the influence of shadow banking on credit transmission from multiple perspectives.Besides,detailed analysis of the influence of shadow banking on credit transmission mechanism from bank loan and balance sheet channels.Empirically,we choose the widely accepted indicators of entrusted loans,trust loans and non-discounted bank acceptance bills to measure the size of shadow banks in recent years.And we select specific financial indicators,such as the size of shadow banks(SB),the size of financial institutions loans(LOAN),the broad money supply(M2),gross domestic product(GDP),consumer price index(CPI),and with the help of VAR model,carrying the empirical analysis researching on the impact of shadow bank scale on credit transmission mechanism of monetary policy in China in recent years.Cointegration test results show that there is an equilibrium relationship between variables;Granger test shows that the changes between the size of shadow banks and the size of financial institutions are closely related;impulse response and variance decomposition results show that the impact of shadow banks on other economic variables is becoming increasingly unobservable.On the basis of theoretical and empirical analysis,it is further confirmed that only when the shadow banking runs reasonably and the scale is controllable,can the credit transmission mechanism of monetary policy be orderly.Finally,some policy suggestions are put forward.This paper uses literature review,empirical research and normative research,current situation countermeasure analysis and other methods to complete,realizing the micro-theoretical analysis of the impact of shadow banks on credit transmission mechanism through bank loans and enterprise balance sheet channels,and listing the impact strength of monthly data analysis,so as to make the research of the whole topic more in-depth.It will provide theoretical and practical reference for standardizing the operation of shadow banking,promoting the reform of the current monetary policy regulation mechanism and improving the efficiency of monetary policy credit transmission.