TITLE:
An Empirical Study on the Development of the Shadow Banking in Hubei Province Based on VAR Models
AUTHORS:
Kexi Jun, Zhuxiao Mei
KEYWORDS:
Shadow Banking, VAR Model, Empirical Study
JOURNAL NAME:
Open Journal of Business and Management,
Vol.6 No.1,
January
10,
2018
ABSTRACT: Based on the integration of relevant conceptions of shadow banking, this paper
sets out to make an empirical study on the scale of the shadow banks in
Hubei province. Building the VAR model through series of test on the data
and parameter identification of the model, it has revealed that the development
of the Shadow banks will be influenced by the growth of the economy
and the scale expansion of the social financing. The financial regulatory authorities
in Hubei Province maintain an objective attitude towards the shadow
banks. It is advisable that they take the “not blocking but dredging” philosophy
rather than “prohibiting immediately”.