Research On The Development And Regulation Of China’s Shadow Banking System

Shadow banking system originated in the United States which has the world’s most developed financial industry. Shadow banking system is well known because it led to the financial crisis in2008. It played an important role in the process of evolution in the international financial crisis. Shadow banking can lead to systemic financial risk, so the regulatory authorities in every country attach great importance to the supervision of it after the financial crisis happened. Although China’s shadow banking is very different from that of the United States in the form and operating mode, especially in the form and degree of risk and unlike the United States.,shadow banking was the main cause of the financial crisis, China’s current irregularities and disorderly operation of the shadow banking become a threat to China’s financial health and the potential systemic risk begins to appear. So, China should regulate the operation rules of the shadow banking and improve relevant legal system as soon as possible to promote the orderly operation of the shadow banking. Learning from the U.S. financial regulatory and reform experience, combined with China’s financial development and regulatory status, this article puts forward countermeasures of perfecting our country’s shadow banking system risk regulation so that it can play a more positive role in the financial system and better contribute to the development of Chinese financial industry. This Article is divided into five chapters:The first chapter introduces the research background of this article and the significance of the topic and gives a brief exposition of the research results and some important ideas of the domestic and foreign scholars in related fields, as well as innovation and inadequacies of this paper.The second chapter gives an overview of the basic theory of the shadow banking. First this article gives a clear definition of shadow banking combined with the research results of scholars both at home and abroad,and then analyzes in detail and expounds the characteristics of the shadow banking, and then analyzes the differences between traditional commercial Banks and shadow Banks. Chapter III describes in detail the development course and current situation of the shadow banking in our country, and analyses the composition of China’s shadow banking, and summarizes the cause of its rise and rapid development. It analyzes the impact of shadow banking on China’s economy from both positive and negative aspect. By researching on the present situation of the shadow banking supervision in our country, this article summarizes the problems existing in the supervision.The fourth chapter mainly introduces the composition and operation mechanism of the U.S. shadow banking system. It analyzes the reform of the shadow banking regulatory policy and measures of the United States before and after the financial crisis. We come to a conclusion that there are significant differences between Shadow Banks of China and the United States after comparing and analyzing its composition and working mechanism, risk transfer, the degree of asset securitization, etc. Because the development of shadow banking is the most mature in the United States, the shadow banking regulatory policy of the United States must have reference significance to our country. However, taking into account China’s current situation, it is necessary to combine the situation in our country to take a more targeted regulatory measures, aimed at perfecting the regulation of shadow banking in ChinaThe fifth chapter is on the basis of the above research and analysis, put forward the policy suggestions of perfecting our country’s shadow banking supervision. First of all, to perfect the supervision legislation of shadow banking and to strengthen the supervision of financial innovation; Secondly, to establish a risk isolation mechanism between shadow banks and commercial banks to prevent the risk of transmission, strengthen the shadow banking information disclosure requirements; Finally, actively promote market-oriented interest rate reform.