Research On Working Model And Supervision Of China Shadow Bank

Since the concept of Shadow Banking System was presented in 2007, great attention has been paid on it by the international financial organizations and financial regulation authorities. With the deepening of the study on the subprime crisis by the academic, the international financial market has formed a broad consensus that shadow banking system is the initiator of the financial crisis. The financial regulation authorities has made regulation polices on shadow banking system, which is consisted of financial derivatives and securitizations. The China shadow banking system is much different from that of developed financial market of United States and Europe, which has special financial corporation system and business model.The first chart of this paper focuses on the definition of China shadow banking system, through comparing the definition made by the financial regulatory authorities and international financial institutions. Based on the circumstances of financial market in China, the China shadow banking system includes bank & trust cooperative shadow banking, bank & fund cooperative shadow banking, bank & securities corporate shadow banking, P2 P loan companies and black loan market.The second chart of this paper focuses on the four main kinds of China shadow banking system, considering the scale and the importance of the business of those institutions. The four kinds of China shadow banking system are bank & trust financial management products investing non-scandalized credit assets, interbank credit assets repurchase, bank & securities corporate asset management and bank & fund cooperative business.The third chart of this paper focuses on the potential risks of China shadow banking system and the influence on the economics and financial market of China.The fourth chart of this paper builds an incomplete information dynamic game model to analyze the game between shadow banking institutions and financial regulatory authorities.The last chart of this paper summarizes the supervision policy on shadow banking system and makes suggestions on supervision and regulation of China shadow banking system.