A Study On The Legal System Of Shadow Bank Supervision

In the modern financial system, there is a kind of financial intermediary which acts like banks, however it isn’t traditional bank, at the same time it isn’t supervised as strict as the traditional bank. On the one hand, it is the beneficial supplement of traditional banks and it promotes the development and prosperity of economy; On the other hand it is also a challenge to traditional banks and it increases the risk of the financial system. It is the shadow banking.Along with the continuous innovation of finance, the shadow banking develops increasingly fast and large. In the financial system, the role of shadow banking is getting more and more important, at the same time the systemic risk and arbitrage risk caused by the shadow banking also has skyrocketed. However, shadow banking regulation failed to keep pace with the development of the shadow banking system. In 2008 the American subprime mortgage crisis triggered a global financial crisis, the authority’s absence of the supervision on shadow banking is considered to be one of the main reasons of the crisis.Since 2008, regulatory authorities and international organizations begin to pay attention on shadow banking regulation and their basic work is to reform and improve the shadow banking regulation legal system. Among shadow banking supervision reform, the Dodd-Frank Wall Street Reform and Consumer Protection Act which issued by the United States is the most famous. Moreover at the request of the G20 summit leaders, the financial stability board published a series of documents on international oversight and regulation of shadow banking. These documents are important to G20 members’ supervision of the shadow banking.This article focuses on the research of United States Dodd-Frank Wall Street Reform and Consumer Protection Act and the documents which published by financial stability board. It summarizes the international shadow banking regulation experience. In order to provide some suggestions for improving the China’s shadow banking regulation legal system, this paper also analyzed shadow banking supervision legal system of China.