The Interaction And Influencing Mechanism Between Shadow Banking And Interest Rate Marketization In China

The concept of shadow banking has been extensively discussed and studied at home and abroad.China's shadow banking has great Chinese characteristics.It is dominated by the banking system.In recent years,the interaction between interest rate marketization and shadow banking has become an issues worthy of attentionwith the accelerating of interest rate marketization and rapid growth of shadow banking.In order to make up the limitations of existing studies,this paper key from the size estimation of shadow banking,the interaction between interest rate marketization and shadow banking and the mechanism behind the influence.The content of this paper is mainly divided into four parts.Firstly,this paper defines the shadow banking from the perspective of credit creation,and proposes two methods to measure the scale of shadow banking.Secondly,this paper proposes two forms of realization of interest rate marketization in China: stock marketization and incremental marketization.Thirdly,this paper analyzes the positive feedback mechanism between interest rate marketization and shadow banking.Interest rate marketization promotes the development of shadow banking through the transmission channel of “cost-benefit”.In turn,shadow banking promotes the interest rate marketization in order to break through the scale constraints of the debt.This paper establishes a structural vector autoregressive model(SVAR)based on directed acyclic graph(DAG).On the base of the model,this paper analyzes the dynamic effects of the relationship between interest rate marketization and shadow banking by the pulse response function and the variance decomposition.The empirical results reveal the existence of the positive feedback mechanism between the interest rate marketization and shadow banking.This paper believes that it is necessary to improve the self-discipline management system of interest rates and expand the membership of the self-regulatory mechanism.The supervision of shadow banking can't take a one-size-fits-all approach,we should establish a moderate and reasonable regulatory system to prevent the systemic risks that may be caused by the rapid development of shadow banking.To resolve the contradiction between interest rate marketization and shadow banking,it is necessary to encourage banks to develop diversified income structure.