Research On Legal Prevention And Control Of Shadow Bank’s Financial Risk

After the outbreak of the international financial crisis in 2008,the emerging financial term "shadow banking" has aroused widespread attention from academic circles and financial regulators in China and abroad.Western developed countries that have been hit hard by the financial crisis have also adopted corresponding measures to effectively control the financial risks of shadow banking.At the beginning,compared with western developed countries,China’s shadow banking system is relatively simple and it’s scope was small,which was not enough to trigger systemic financial risks.However,in recent years,with the continuous of financial innovation and the continuous development of financial markets,shadow banking has developed rapidly in our country,and its size has also grown increasingly,and its appearance has become increasingly complex and diverse.However,the low transparency of shadow banking in our country,and the traditional business of shadow banking and commercial banks are intertwined,which may become an important driving force that triggers financial risks.And under the special background that China’s macro economy is still in a downward trend,the risks of different businesses of shadow banking are more likely to be transmitted and spread,which has become an important reason for the outbreak of systemic financial risks in China.In the 2017 government work report,it was clearly stated that we should pay attention to the financial risks accumulated by shadow banks,and once again sound the alarm bell for preventing and controlling systemic financial risks.Therefore,this article tries to effectively prevent and control the financial risks of shadow banks from the level of legal supervision,so that they can better play their positive role and promote the stable development of China’s financial market.Shadow banking as a newly sprouted thing in China’s current financial market operation mode,it has two sides.On the one hand,through continuous financial innovation,China’s economic development has been promoted to a certain extent.On the other hand,due to the weak supervision and high risks,it poses a threat to the stability of China’s financial market.Based on the analysis of domestic and foreign literature,this paper uses comparative analysis,historical analysis and other methods to study the legal prevention and control of shadow bank’s financial risks.By stating the definition of shadow Bank of three different institutions in China and abroad,this paper defines the shadow Bank of our country and clarifies its classification.And based on the statement of shadow bank’s basic theory and its financial risks,this article analyse the status of legal prevention and control of shadow banking and existing problems.Based on the analysis of the legal risk prevention and control experiences of shadow banking in the United States,the United Kingdom,and the European Union,and also combination with China’s shadow banking actual situation,the enlightenment of foreign legal prevention and control experience of shadow banking financial risks to China is proposed in this artical.Finally,suggestions for improving the legal prevention and control of financial risks in China’s shadow banking are put forward from three aspects: changing the concept of supervision,formulating laws and regulations,and improving related systems.