Study on the Impact of China's Shadow Banks on Monetary Policy

This paper selects relevant monthly data from January 2013 to March 2017, and analyzes the effect of shadow banking on the implementation of monetary policy by establishing a VAR model. The results show that in the short run, rapid expansion of China's shadow banking system will Influencing all levels of indicators in the process of monetary policy transmission,and weaken the effectiveness of monetary policy instruments by affecting money supply mainly.But in the long run,Shadow banking has no obvious effect on the effect of monetary policy.