Research On Chinese Legal Supervision Of Shadow Banking

The shadow banking as a supplement of traditional banking system, toachieve the similar maturity transformation to traditional bank functions, playedan important role in improving financial efficiency and promoting the optimalallocation of resources in financial markets. However，the shadow bankingbrought huge potential risks to the entire financial system. The shadow bankingfree from regulation, leverage levels and liquidity risk are high, Information isnot transparent, and between the shadow banking, the shadow banking andtraditional banking are deep-rooted, easily cause systemic risk. It is in this sensethat the regulation of the shadow banking becomes more important. However, dueto the different degree of development of ifnancial innovation and financialmarket, the development stage and manifestation of Shadow Banking are alsodifferent, Society’s perception and recognition of the shadow banking are notuniform, thus the thinking of regulation, the level of detail and intensity remaincontroversial.There is no doubt that Chinese shadow banking has been produced, and hasa preliminary development in recent years. However, on the whole, comparedwith foreign advanced economies, the development of Chinese shadow bankingsystem are still in the exploratory stage, smaller size，simple product structures,low levels of innovation，the leverage under control. Since the financial crisis,since the ifnancial crisis, China implemented a strict administrative financialregulatory system, lack of objective assessment of function and risk of shadowbanking，further restricts the financial innovation. In the wave of internationalfinancial regulatory reform，we should study actively, calm reflection, andenhance the level of supervision from foreign experience.This paper focuses on Legal Supervision of Chinese shadow banking.Starting from the basic legal theory of the shadow banking, Defines the conceptand legal characteristics of the shadow banking in our country, combed the formsof shadow banking, and analyses the potential legal risks‘On the basis, with thecurrent practice of supervision on shadow banking in china, analyzes the existingproblems, and comparative analysis of regulatory measures by the United States, European Union，Financial Stability Board, summarizes the internationalregulatory experience, from regulatory law philosophy and legal systemssuggestions, put forward to improve the legal regulation degree of Chineseshadow banking. However, there is a large gap between China and foreign in thedegree of financial development, the development degrees of the shadow bankingare also different, and the international supervision of shadow banking mainly fordeveloped countries. Therefore，when we learn from international experience, weshould not blindly echo or copy. In the case of Chinese financial system was notdeveloped, we should encourage financial innovation that must be encouraged,ban illegal financial criminal activities that must be banned, and for the grayfinancial should be reasonably Guide, perfecting theirs’ legal systems. Moreover,with the development of financial innovation and financial regulation, regulatorymeasures must be adjusted, if the current shadow banking under regulation byregulators，will no longer be regulation of shadow banking. Generally speaking,China’s regulation of the shadow banking system，must uphold the idea ofmoderate supervision，while maintaining ifnancial stability, encouraging financialinnovation to the maximum extent, administrative deregulation and financialsupervision ruled by law.