Chinese Shadow Banking Supervision Legal System Research

This paper primarily carries out studies on how to consummate legal supervision and management system of shadow banking. The generation, definition and development process of shadow banking are introduced firstly. After American subprime mortgage crisis, the concept of shadow banking was accepted widely. The shadow banking developed in the form of asset securitization at the earliest stage into current extremely complicated architecture now. The shadow banking was also introduced into our country, filling a gap which has existed in our financial industry. Secondly, the specific characteristics of Chinese-style shadow banking and its impacts on our financial industry are analyzed. The existence of shadow banking is an opportunity as well as a challenge to our financial industry. We are required to take advantages of the opportunity created by shadow banking for our emerging financial industry and avoid falling into the same old trap of American economic crisis. Several modes of shadow banking in our country include bank’s financial products, trust plan and illegal private banks. Based on the features of these products, our country has issued specific policies to control the risks that are brought by these products and may be imposed on our financial market. Subsequently, the current situation of shadow banking monitoring and supervision in the United States, the United Kingdom and Japan is analyzed and the amendments made by these three countries to respective supervision loopholes after financial crisis are concluded as well. With summary on the experience of three countries, several suggestions are put forward then. Lastly, through analysis on various policies and legal regulations adopted by foreign countries for shadow banking, summary of experience, references made to successful cases of supervision on shadow banking abroad and in combination with our specific national conditions, it is proposed to perfect the legal supervision and management system of shadow banking in our country in four aspects.