Empirical Research On The Impact Of Shadow Banks On The Stability Of Commercial Banks In China

Shadow banking has promoted the expansion and spread of the 2008 global financial crisis to a certain extent,and has become the focus of attention of academics and regulatory authorities after the crisis.As an important pillar of the financial system,the commercial banking system plays a vital role in economic development.Research on the impact of shadow banking on the stability of commercial banks has become the focus of many scholars.On the one hand,due to the limitations of China's financial system and the financing constraints of the financial system,domestic companies' financing needs are not met.On the other hand,shadow banking products are favored by commercial banks because of their characteristics,leading to shadow banking China has grown rapidly and its scale has been growing.It has become a part of the financial system that cannot be ignored so far.While it helps economic development,it also hides huge risks.Therefore,studying the impact of shadow banking on the stability of commercial banks has important theoretical and practical significance for the healthy development of shadow banking and the safe operation of commercial banks.This article first introduces the relevant theories of the domestic and foreign shadow banking systems and the stability of commercial banks.Based on this,it defines the scope of shadow banking and analyzes the development status of China's shadow banking.Second,it introduces the theoretical basis of the stability of commercial banks.This paper analyzes the operation mechanism of the impact of shadow banking on the stability of commercial banks,and theoretically expounds the positive and negative effects of the development of shadow banking on the stability of commercial banks.Based on the theoretical analysis,using the shadow banking development data of China to conduct empirical tests,we respectively selected four indicators such as bank wealth management products and trust loans to measure the size of the shadow bank,and the six indicators such as the capital adequacy ratio of the commercial bank and the non-performing loan ratio were measured.For the stability of commercial banks,the annual data of 14 representative domestic commercial banks in2004-2018 was selected to establish a panel data model,and an empirical analysis of the impact of the scale of shadow banks on the stability of China's commercial banks.The measurement results show that the impact of shadow banking on the stability of commercial banks is in a U-shaped relationship,and there is a certain "threshold effect" between the two,that is,shadow banks have a dual role in the stability of commercial banks.In response to the above conclusions and the current status of China's shadow banking development,this article proposes the following policy recommendations: first,the shadow banking category should be accurately defined for statistical purposes;secondly,risk protection mechanisms should be established,relevant laws and regulations should be improved,and dynamic supervision of shadow banking should be strengthened;Finally,commercial banks should strengthen their own risk management to resist the impact of shadow banking.