A Comparative Analysis Of Sino - American Shadow Bank System

After the global financial crisis, because of its large scale of financing, high leverageand opaque operating mechanism, the shadow banking system has become a hot researchpriority in academic circle as well as the main task for the regulatory agencies. After thefinancial crisis, the American shadow banking system is turning from expansion tocontraction, but its securitization and collateral intermediation chain are basically intact. TheChinese shadow banking system had a rising history that less than a decade, it is a systemthat mainly base on the business of commercial banks, a system that are more simpler that werather called it the alienation of the shadow banking system, and the major function of thissystem is the shadow lending,just like banking loans.Comparing our shadow banking system with the American’s, there are three majordifferences between. On the development backgrounds, there are differences in the financialsystem, social financing structure and market-oriented interest rate between the two countries.On operation mechanism, the two countries have both achieved the function of creditintermediation,but the securitization and Non-credit financing reflects variances between thetwo countries reflect the different stages of developments, now the development of shadowsystem in China just matched the stage of American shadow system in the80s, it lies in theinitial stages of the shadow banking credit intermediation; while the United States is now at ahigher level than we are, and the financial crisis they ran into prompted the shadow system tobecome more mature. There is a big difference between the two in regulation as well.What we should focus on in the future shadow banking development is to strictly definethe risk of the product, carefully unfold securitization and reform remuneration mechanisms.Regulatory authorities should build the framework with macro-prudential, improve thetransparency of the shadow, build up the consumer protection mechanisms and encourage thestandard development of Internet financial intermediation.