Research On The Impact Of Shadow Banking On Systemic Financial Risks In China

During the subprime crisis of 2008,financial innovation followed the financial crisis.Under the background of financial liberalization and financial innovation,the Banks that rise and grow continuously become parallel or complementary financial institutions with traditional commercial Banks in the market operation.With the unbalanced development of the financial system and the gradual expansion of the market economy,the scale of shadow banking is also growing.It is also because of the traditional bank,which restricts the capital demand of some small and medium-sized institutions,and intensifies the crazy growth of diversified shadow Banks such as bank-trust cooperation,entrusted loans and private lending institutions in China's financial system.In the process of continuous growth,shadow banking,which originally emerged to avoid supervision,will bring more and more risks with the existence of maturity mismatch and liquidity risk.The general feature of high leverage ratio in shadow banking also intensifies the possibility of turbulence in the credit creation process.Therefore,it is of great significance to deeply study the inherent risks of shadow banking,the credit creation process in its operating mechanism and the impact of these processes on systemic financial risks.This paper expounds the risks and transmission channels of shadow banking in China,combines with the measurement method of systemic financial risks in China,and qualitatively starts with the theoretical mechanism of shadow banking affecting systemic financial risks,selects the financial stress index to quantify systemic financial risks,and combines it with the quantitative method on the basis of qualitative analysis.It is also divided into two categories according to China's characteristic shadow banking system,and the influences on systemic financial risks are studied separately according to their business characteristics.Firstly,the paper describes in detail the definition and emergence of shadow banking in China.On this basis,it introduces the emergence and dissemination channels of shadow banking risks in China.It is found that shadow banking is one of the important indicators affecting the systemic financial risk.Second,this article selects FSI(financial stress index)of a quantitative definition of systemic financial risk in our country,and the economy as a whole market can be divided into the money market,bond market,foreign exchange market and stock market is a market,each financial pressure index is obtained by all the basic variable model,using methods CRITIC synthesize son index into the comprehensive index of financial stress.Finally,the state space model wasestablished,and the results showed that most FSI was at the level of moderate risk.Shadow banking has a significant impact on the systemic financial risk,and the private financing underground organization is the main factor affecting the systemic financial risk.Therefore,both the government and the macro market should strengthen the supervision of the shadow banking system in a larger scope,expand the supervision of the risks of the shadow banking dominated by commercial Banks,and guide and supervise all kinds of underground grey organizations in the private finance to the right way.Finally,based on the conclusion of empirical research,this paper puts forward corresponding policy Suggestions,such as the stable and orderly implementation of relevant laws and regulations,the stable marketization of interest rate,the control of the leverage ratio of shadow banking and the establishment of a mutual regulatory system.