Research In China’s Shadow Banking Potential Risk

In recent years,the rapid growth of the shadow banking in China has its specific background and reasons,its positive role played to broaden the financing channels,improve financial efficiency can’t be ignored,however,its risk is also worthy of attention.Because the shadow banking is largely unregulated,and the shadow banking in recent years is developing rapidly,it has become increasingly important,its potential risks could threaten the stability of the whole financial market.The definition of shadow banking at home and abroad is not uniformed.According to the FSB definition of shadow banking,concerning the State Council document No.107,China shadow banking can be summarized in the following part,bank financing,entrusted loans,trust and cooperation,the silver card cooperation,trust products,financial companies,private lending,loan the Internet,the shadow banking credit guarantee.According to this part of the assets and the results estimated total amount of China’s shadow banking was about 46 trillion yuan,nearly 70% of China’s GDP,and is growing rapidly.From the theoretical analysis,mainly exist various types of shadow banking in various types of risk and the proportion of the size of the shadow banking,the most important risk of China’s shadow banking is credit risk.This paper analyses the risks of China’s l trusts,WMPs from the empirical level.At last,this article from the financial market reform,the construction of the credit system,the legal framework,proposes suggestions for supervision of the main risks that China’s shadow banking financial innovation perspective,the first is regulating government credit,promote interest rate reform;secondly,improve the third party rating system,improve the information disclosure and sharing mechanism,third is to perfect third party rating system,improve the information disclosure and sharing mechanism,the fourth is to regulate financial innovation,to prevent moral hazard.