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| Asset Management, Shadow Banking System and Monetary Policy Transmission |
| WEN Xinxiang, SU Naifang
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The People’s Bank of China;
Operations Office,Beijing,The People’s Bank of China |
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Abstract As the rapid development of asset management business, China has gradually entered the “great asset management era”.Meanwhile, China's shadow banking system has rapidly grown, which brought great challenges to the transmission of China's monetary policy.The paper established a DSGE model with financial friction to study the mechanism of shadow banking system.We find shadow banks have higher loan interest rates, which intensify the financial dual-track system in China.In addition, the loan ability of shadow banks is less sensitive to monetary policy, which weakens the transmission of monetary policy.In the future, it is necessary to standardize the development of asset management business and improve the shadow banking system so as to strengthen the effectiveness of monetary policy.
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Received: 03 May 2018
Published: 16 November 2018
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