U.S. Shadow Banking System Research

Began in the 2007 subprime crisis,and a full-blown financial crisis in 2008,is recognized as the most serious global economic crisis since the Great Depression of the thirties of the last century in the United States.In the face of such a grave financial crisis,scholars from various countries carried out fruitful research,get a lot of stage of the research results.Due to the difference of the position of the researchers,research perspective,research methods and the materials used,etc.,so that the results of research showing the scene of the "Hundred Flowers",gives a different inspiration.Sort of work through the relevant literature can be found in the U.S.shadow banking system and the role of the financial crisis has become a focus of many domestic and foreign research.But such research is mainly focused on analyzing the mechanism triggered the U.S.shadow banking system and deepening of the financial crisis,as well as how to effectively strengthen the regulation of the shadow banking system in the United States.Overall,a longer span of the shadow banking system to be systematic,comprehensive and in-depth study and analysis of the literature seems to be rather weak and insufficient.So in a way,this study commenced precisely in order to make up for this deficiency.In fact,to strengthen the regulation of the shadow banking system in the United States,you must first shadow banking system in the United States have a systematic,comprehensive and in-depth understanding of;must be followed before the financial crisis on the U.S.shadow banking system supervision exist be detailed inspection and analysis,and where to find the crux of the problem.Based on this,the first three chapters of this article were made a system overview of the relevant literature and theoretical basis of the shadow banking system in the United States,followed by the definition and scope of the U.S.shadow banking system defined.Chapter 3 Historical Survey of the U.S.shadow banking system,its economic base,institutional background and technical conditions,and its stage of development and characteristics were classified and summarized.Chapter 4Supervision analyzes the status and role of the shadow banking system in the U.S.financial system,the role from both positive and negative effects were investigated.Shadow banking system in the aftermath of the U.S.subprime mortgage crisis in 2007 was only put forward the concept of the sub-prime crisis and the subsequent financial crisis ensued became an excellent material for the understanding and analysis of the shadow banking system in the United States.Chapter 5 focuses on the mechanism of action of the shadow banking system of the United States in the production and proliferation of the process of the subprime crisis.Chapter 6analyzes the problems that exist in the supervision of the shadow banking system,and explored to strengthen the shadow banking system regulatory objectives,tools and frameworks.Chapter 7 Taking into account China’s economic development is also facing troubled shadow banking,combined with the relevant conclusions of the study of the shadow banking system in the United States,the shadow banking system status,characteristics and existing problems were investigated,and how to strengthen the supervision of the shadow banking system were analyzed.Chapter 8Conclusions and Outlook.The main conclusions of this paper are: 1,Being a concept,the shadow banking system is only in recent years,but its not only recently emerged new things,but through the production,development and growing the course of history,the connotation and extension constantly changing,both different from the traditional banking system with a high degree of correlation huge system of financial intermediation;2,the shadow banking system is the product of financial innovation,to some extent,in order to break through the existing financial regulatory constraints regulatory arbitrage results,but more fundamental,is the financial system in order to adapt to the technical conditions and changes in economic conditions and the results of the adjustments;3,the formation and development of the shadow banking system to meet the diverse needs of the market,the financial deepening played a certain role in promoting economic development,but also bred and accumulation of systemic risk in the financial system,increase the vulnerability of the financial system;4,the U.S.shadow banking system in the occurrence and spread of the subprime crisis in The role fully reflect the risks discussed above,the mechanism of the: U.S.shadow banking system as a system of financial intermediation is different from the traditional banking system,with a long chain of intermediaries,high leverage rate operation,short-term debt and the lack of a dominant public characteristics of the sector guarantee.The intermediary chain stretched,the surface is the risk of a single link dispersed,but increases the risk of infectious and increase the systemic risk for the entire financial system;makes the operation of the high leverage ratio in the face of economic fluctuations,financial the main forced through the process of "deleveraging",which amplifies the fluctuations in the economy,increase the vulnerability of the financial system;to secure short-term debt and the lack of a dominant public sector so that the shadow banking system in the face of negative news,prone to "run" phenomenon and increase the market panic.If there is no central bank liquidity support by the shadow banking system "runs" and the double impact of market panic financial institutions will have to be devalued sale of assets,which will further increase the panic in the market,creating a vicious cycle;The shadow banking system of the United States played a negative role in the process of the occurrence and spread of the subprime mortgage crisis also reflects the U.S.financial regulatory system lag.Faced with the shadow banking system has profoundly changed the problems of the reality of the traditional financial system and the U.S.shadow banking system and financial regulatory authorities to strengthen the concept of financial regulation updates the transformation of the financial regulatory system.Change the target of the financial regulatory system should control the risk of the shadow banking system and to ensure the efficiency of the equilibrium point of the shadow banking system;Chinese shadow banking system is the important issues facing China’s financial sector in recent years.Bank financial products,bank-trust cooperation and acceptances has become China’s financial sector can not be avoided problems to be solved.Interest rate market and the introduction of the deposit insurance system may be only a matter of time,is more important is to combine the status and characteristics of China’s shadow banking system,taking into account the efficiency and safety,assess the situation and work out the financial regulatory environment adapt to the economic situation in China and the world economy the system.The revelation of this study on the relationship between financial innovation and financial supervision: financial innovation in order to break the constraints of financial supervision and regulatory arbitrage,and how to interpret and understand Supervision the fact that the last century After decades on behalf of a major reform of financial regulation introduced by the Great Depression did not immediately lead to the emergence of large-scale financial innovation in the last century,seven eighties financial liberalization policies,especially the deregulation of the financial regulation,the United States financial innovation is endless,the shadow banking system of the United States was supported by a considerable development.Appears to be in need of innovation to examine the relationship between financial innovation and financial supervision,to be able to find the real driving force behind the financial innovation.It is true that financial innovation is often at the beginning of the performance of regulatory arbitrage is one is to get rid of the existing financial regulatory constraints,but the basis that the financial regulation led to financial innovation,it is too arbitrary,guilty of this inferred error-i.e.,a phenomenon occurs in another phenomenon occurs after that previously occurring phenomenon is the cause of the later occurrence of the phenomenon,and the later occurrence of the phenomenon is the result of the previous occurrence of the phenomenon arising.Financial regulation can be found through the study and analysis of the history of the United States in nearly 10 years since financial innovation,especially in the formation and development of the shadow banking system in the United States,did not immediately lead to a large number of financial innovation,and,to some extent,but is financial innovation-driven changes in financial regulation.Through the phenomenon of nature,the logic is: advances in technology and the changing economic situation at home and abroad,making greater than its cost,the income of the financial innovation,financial innovation become profitable,so financial innovation has become a reality.Can be said that financial innovation is the product of changes in the economic base,financial innovation to adapt to changes in the economic base,to meet the market needs generated by changes in the economic foundation lead to exchange rate risk,such as the floating exchange rate system to replace the fixed exchange rate regime,due to exchange rate fluctuations The market needs to avoid exchange rate risk,currency swaps came into being;the worsening inflation began in the late sixties in the United States,the rising market demand to avoid interest rate risk,interest rate swaps introduced to meet this demand,and so on.At the same time,advances in technology and the changing economic situation at home and abroad,that is,the change of the economic foundation to the existing superstructure,such as the economic system,put pressure on,a profound change occurred when the economic base,so that the existing the superstructure become the shackles of economic development,which have to be adjusted in order to adapt to the new situation.This adjustment is passive,although the United States since the last century,financial liberalization that began during the 1980 s,the financial sector "to monitor" seemingly initiative of the Government of behavior,in fact,the environment and situation(such as long time "stagflation" and from international competition)pressure generated by the passive adjustment.In fact,after the Great Depression,Roosevelt’s New Deal reforms in financial regulation(such as the Mc Fadden Act,the Glass-Steagall Act,Q Ordinance and the Federal Deposit Insurance System,etc.),that is,the Great Depression of the passive reaction,and the introduction of the voice of the recent years,rising to strengthen the regulation of the shadow banking system and the corresponding financial regulation reform program(such as the Basel Capital Accord III and Dodd-Frank Act),is the 2007-2009 financial reaction crisis passive.In this regard,the well-known U.S.economist Barry Eichengreen has written that: Why not been introduced after the financial crisis,the Glass-Steagall Act II? The main reason may be due to the U.S.government bailout(such as the nationalization of AIG,the Fed injected a lot of liquidity to the market through quantitative easing,etc.)so that the financial crisis has been some degree of weakening of the destructive power of the world the extent and impact of the economic deterioration and no serious during the Great Depression,and thus lead to financial regulatory reform efforts than the Great Depression after the launch of the reform.This seems to be a law of nature-the greater the force,the greater the reaction force,and vice versa anti.