The Influence Of Shadow Banking On Monetary Liquidity

Shadow banking draws people's attention and is a controversial topic.It contains complicated contents and is difficult to analyze.The purpose of this paper is to analyze the shadow banking system in China and study the influence of different types of shadow banking on monetary liquidity.In the theoretical study,this paper uses the characteristic analysis methods to analyze different types of shadow banking.These characteristics include: credit creation,liquidity transformation,term mismatch,financial innovation and regulatory arbitrage,etc.It is found that different types of shadow banking respectively meet several of the above characteristics,not all the characteristics.Based on the analysis,shadow banking types are assessed.This paper indicates that commercial bank financial product is the important form of China's shadow banking,which has more characteristics of shadow banking and is more risky and systematically important.Then this paper models the VAR to carry on the empirical analysis,it is verified that the correlation between traditional credit and monetary liquidity is weaker and the correlation between banks financial product and monetary liquidity is stronger.Finally,suggestions and countermeasures are given by the paper.