Legal Research And Regulation Suggestion Of The Operationmode Of Shadow Bank In China

Shadow banking has become a new commercial model with its rapiddevelopment in recent years. However, risks have come up accordinglydue to its fast expansion in lending scales, which, as a result, bringsthreats to the financial stability in China to a certain extent. Hence, it’s ofgreat important to enhance the supervision over shadow banking,especially in the context of financial crisis and global calls for regulatingthe shadow banking system.According to the international theories of banking supervision andfrom the perspective of banking supervision, this paper has studied theoperating model and legal relationships of bank and trust cooperation andhas summarized relative policies. Based on these, the law evasion of shadow banking against regulatory policies has been analyzed. The majordifficulties and problems of supervision over shadow banking systemhave been presented as well. The research can help improve thesupervision over shadow banking system and thus contributes to the safeand healthy development of the entire financial system.