The Research On The Development Of Shadow Banking In Developed Countries

In2007，sub-prime crisis broke out in America. And gradually it sweptEuropean Union and Japan and many other countries, which at last triggered theglobal financial tsunami. Shadow banking which is called "the phantom of finance"as an important trigger of that crises caused the world concern and has become thetarget for a lot of criticism soon after. Recently，Chinese shadow banking hasbrought an out-breaking growth. Shadow banking can raise social financingefficiency and make up the lack of financial market development. But at the sametime，it also can bring financial risks and challenges to the financial supervision andmonetary policy. So regulating and developing shadow banking system and makingusing of it in China economic development has become a common concern for theacademic and practical circles. Shadow banking in developed countries has faroutweighed that of China’s in its financial innovation, product complexity andleverage. Compared with those countries, China shadow banking has developed veryrapidly, which closely related to China traditional banks. And it has a highersystemic risks. Based on the research of the development of shadow banking indeveloped countries in the post-crisis era，the paper probes into and discusses theessence and characteristics of China shadow banking system，which is of greatsignificance for the reflection of the financial crisis and prevent systemic risks andinvestigation of the financial innovation. From the dialectical view on the advantagesand disadvantages of shadow banking in developed countries and considering thedeveloping stages and special characteristics of finical system in China，the papercomes up with policy recommendations to perfect shadow banking supervision mechanism and lead to the healthy development of shadow banking of China.