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”.