On Chinese-style "shadow Banking" Legal Regulation

The economic crisis in2008made the name of shadow banking firing up overnight. Many industry professionals thought that the shadow banking system is to blame for the crisis. Lack of supervision of shadow banking have become the main driving force causing the economic crisis. Then, all countries--leding by the United States have legislated to strengthen the regulation of the shadow banking. Because of the different countries or regions, the development of the shadow banking are diverse. In economically developed countries, such as the United States, the European Union, the shadow banking can be seen everywhere,it is an integral part of their financial and economic system. It has a high marketization degree and a variety of forms.And now our country is still in the banking indirected financial system, the shadow banking system development is late. Most of them are still in the exploratory stage, on a smaller scale, product structure is more simple. In our country, the shadow banking performance are wealth management products, the underground financial form and off-balance-sheet lending. These business are free from traditional commercial banking system and engage in similar financial activities,but for their supervision is relatively lacking.In November2012, huaxia bank’s "bank slip" incident uncovered the tip of the iceberg of the shadow banking system in our country. In this article, aiming to reveal the responsibility of each side of the shadow banking system, through analyzing this case,and finally putting forward the policy proposals on the healthy development of the shadow banking system in our country.