Research On Legal Supervision Of Chinese Shadow Banking

With the continuous development of the world’s financial system, the Shadow Banking begins to appear as a kind of typical products of financial innovation. Such financial institutions have credit intermediation function like commercial banks, but they are not subject to commercial banks legal supervision partially or fully. The rapid development of Shadow Banking has made a large contribution to capital growth in worldwide, but it also has accumulated a huge risk. After this round of financial crisis, examining the legal supervision of Shadow Banking has become a problem that many countries need to be addressed, so does China. In exploring our legal supervision of Shadow Banking, it is necessary to catch the differences between China and abroad at first, so that rote and the lack of acclimatization can be avoided when comparative studying. In addition, despite the prevalence of Shadow Banking has brought a lot of risk, it has a positive impact on the development of financial system. So Shadow Banking shouldn’t be denied Shadow entirely, but to be corrected and guided through regulation. Legal supervision is very important to the development of Shadow Banking, however, there are many deficiencies in the current system in China, which need continuous improvement. In the system of the legal supervision of Shadow Banking, supervision concept, supervision mode and supervision rule are the most pivotal parts. The concept is the foundation of the system construction. The mode is the specific scheme chosen under concept’s guidance. The rule is the reflection of concept and mode in the laws and regulations, as well as the external performance of legal supervision system. Just because of these, this paper carries on research on the supervision concept, supervision mode and supervision rule of Chinese legal supervision of Shadow Banking, and then advances some suggestions respectively integrated the actual situation in our country and the successful experience abroad, in order to use the experiences of the three points to lead improvement of the whole system of the legal supervision of Shadow Banking in our country.Apart from the preface and conclusion, this paper consists of five parts:The first part makes a fundamental interpretation of Chinese Shadow Banking. When researching a legal supervision system, comprehending and defining its object accurately are the first step. As to the Shadow Banking, regionalism and timeliness must be combined. The regionalism refers to localization of the Shadow Banking in China, seeing the difference between affairs in and out of our country. The timeliness refers to the characteristics of the times after financial crisis, which need a true comprehension on both Shadow Banking’s risk and its duple influence on financial system.The second part analyzes the problems of Chinese legal supervision of Shadow Banking from three levels, including supervision concept, supervision mode and supervision rule. This part explains the three reasons of these difficulties. Firstly, the development of Chinese financial market is backward. Secondly, the powerful innovation of Shadow Banking is conflict with the hysteresis quality of legal supervision. Thirdly, Chinese Shadow Banking has a huge difference with its similar in other countries, which leads to a reference barrier.The third part revalues the relationship between safety and efficiency in the legal supervision system of Chinese Shadow Banking. A value system can have both safety and efficiency, and Moderate Intervention is the ruler to balance them. On this basis, this part points out that financial fair is the new path to rebuild supervision concept. It can guide the whole legal supervision system in terms of competition fair, distribution fair and legitimate discrimination treatment.The fourth part researches the two supervision mode, integrated supervision mode and separated supervision mode, combined with international experience. On the basis of this research, this part analyzes the appropriateness of their implementation in China. According to the development characteristics of Chinese Shadow Banking, it is proven that integrated supervision mode is not suited to our country at this stage. More appropriate approach is to make improvements on the basis of the Chinese multiple supervision mode. In the legal supervision of Chinese Shadow Banking, coordination among regulatory agencies is very important. The central bank’s power of macro-prudential supervision needs to be to implement, as well as the present institutional regulation needs to be transformed into conduct regulation.The fifth part is to make recommendations for improving the supervision rule from two aspects of system and content. In system, the present rules need to be revised, in order that specific clauses for Shadow Banking are supplemented in the financial supervision law, and the rules can be systematic structurally. In content, a complete set of supervision rules should contain necessary parts such as method and responsibility besides following demands of concept and mode. Only in this way can these important systems be embodied. So this part clears up problems of method and responsibility, so as to propose corresponding solutions.