International Practice Of Shadow Banking Supervision And Its Implications For China

As a new concept, Shadow Banking was first proposed by the US PacificInvestment Management executive director Paul McCulley in the2007annualmeeting of the Federal Reserve. With the outbreak of the financial crisis, shadowbanking as the initiator of evil began to receive international attention from allcircles of society, and occur frequently in a variety of media and academic journals.Because of the business boundaries of the shadow banking and traditional bankblurred, along with differences in the development of national economy andfinancial deepening degree, lead to the shadow banking forms,functions,the type oftool are not the same. Except that, definition of shadow banking are also differentopinions. After the crisis, countries especially developed economies deeply reflect onthe outbreak of the crisis. And on this basis began to promote the reform of financialsupervision system.That comprehensively strengthen and improve the shadowbanking regulation has become the top priority of countries financial regulatoryreform. Compared with developed countries, China financial innovation degree islow, the development of asset securitization is still not mature, and has not formed amature market economic system.In this background, China’s shadow banking systemis still in its infancy, and there is a big difference with the foreign shadow bank. ButChinese shadow banking risks can not be ignored. CBRC executives believe that theshadow banking risks, platform loans and real estate credit risk are the three majorrisks facing China’s banking sector in2012.For China, the shadow banking riskshave begun to emerge, strengthen and improve the shadow banking supervision hasbecome essential.The article is divided into five chapters: The first chapter is the introduction part, firstly introduces the background andsignificance of the topic of this article, and then reviews the research scholars inrelated fields, summarizes the research methods and ideas of this paper,and finallyintroduce the innovation place and inadequate of this paper.The second chapter summarizes the theoretical basis of the shadow banks. First,combining existing research results of domestic and foreign scholars, it tries tosummarize the definition of shadow banking. Then, based on the definition, itintroduces some form of domestic and foreign shadow banks. Finally, it is anoverview of the characteristics of the shadow banking.The third chapter mainly analyzes the international regulation practice of theshadow banking. The USA broke out serious sub-prime crisis in2007, whicheventually evolved into a global financial crisis. In this context, countries especiallythe developed economies have taken a series of measures to strengthen and improvethe supervision of shadow banking. Among them, the United States, as the worst hitcountries in the crisis, decided to make major reforms of the US financialregulatory system, and became the forerunner of the shadow banking regulatoryreform. The "Dodd-Frank Wall Street Reform and Consumer Protection Act",whichis known as the Great Depression of the1930s, the largest reform, most far-reachingfinancial regulatory reform program,was passed in July2010. The bill reshaped theUS financial regulatory framework fundamentally, and marks the end of the USfinancial system "deregulation".The forth chapter mainly introduces the shadow banking internationalregulatory practice enlightenment to China. Firstly it introduced the regulatory statusof China’s shadow banks in detail, especially measures related to shadow bankingsupervisory taken by authorities after the crisis.Then it analyzes the problems ofChinese shadow banking regulation on this basis, including financial regulation andsupervision repeat vacuum coexist, legal and financial regulatory system to protect incomplete and overly strict administrative supervision of financial innovation led toslow.Finally, draw the shadow banking supervision international experiencecombined with the regulatory status of China,it develop regulatory measures inChina’s shadow banking.The fifth chapter summarizes the whole paper and the prospect of thedevelopment of China’s shadow banking.