Chinese Research System And Shadow Banking Regulatory Issues

After the financial crisis in United States,2007, people pay more attention to theshadow banks, and strengthens the supervision of shadow banks becomes theconsensus of everyone. Regulatory authorities around the world regard themaintaining security and stability of the financial markets as the starting point of theshadow banking supervision and put the shadow banks into the scope of supervision.As the same time to strengthen the systemic risk and arbitrage behavior of the shadowbanks, regulatory reform measures have been introduced. With the continuousdevelopment of global liberalization and financial innovation in recent years, Chinahas shadow banks but not forming system. The shadow banks in China developedgradually into a new market pattern of Chinese financial industry, supplemented withbanks and other financial institutions that are unable to meet the financial needs, andplayed a very important role of economy in China. Now, how to take supervision ofthem has become an important topic of concern.With the shadow banking system and regulatory issues in China, this paper will firstanalyze systematically the motivation of the shadow banking of China in threeaspects include avoiding financial supervision, shadow banking funding demand andsupply on the basic summarize of the shadow banks’ conception, the Connotation andoperation of shadow banking system.Then, analyze the main expression forms anddevelopment situation of the shadow banking system in China according to threeleading types as banking financial institutions, non-banking financial institutions andnon-financial institutions.And in the basis of the analysis, there are some seriousproblems exist in the development of the shadow banking system such as financialfragility, weaken the effectiveness of monetary policy and cause systemic risk.Meanwhile, there are some realistic problems exist in supervision system such asimperfect legal system, unclear regulatory goals and so on.Last, in reference toreform measures and experience of shadow banks in international major economies,this paper will discuss how to build and optimize the supervision system of shadow banking in three levels: one is to construct the shadow banking supervision frame nthe macro level, the two is to improve the supervision system of shadow banks fromthe system level, the three is from the micro level to strengthen internal supervision ofshadow banks.