The Study Of Shadow Banking System Pushing The Subprime Crisis

ABSTRACT:Since the outbreak of the U.S subprime crisis in the first quarter in 2007, many of the world's top financial institutions have been hit to some extend, suffered a great loss. The causes of the crisis and the paths the crisis transmitted through have drawn a lot of attention of financial scholars at home and abroad.This paper based on the case of U.S subprime crisis, made some analysis of the aggravation shadow banking system did to subprime crisis, and as a result, weakened by the subprime crisis; revealed that while shadow banking system had brought prosperity in the financial markets, it also expanded the hidden risks and the possibility of detonation of the crisis.In addition to this, this paper gave some evaluation to "The Wall Street Reform and Consumer Protection Act", made some comments on the composition and features of China's shadow banking system, and made recommendations to the focus of reforming and improving China's financial regulation.