| Shadow Banking System refers to the fiduciary media topic and relative activities, excluding those in ordinary banks. Providing the market topic with more choices of financing, it acts as a positive role. During the present financial crisis, devoid of supervision, it threatens the stability of finance for it may become the source of systematic risk because of its possible liaison with ordinary banking system, which could expand the risk. A proposal, "to strengthen the supervision upon banks" and "to promote the cooperation between the FSB (Financial Stability Board) and other international standards- formulating organizations" was given in the G20 Sorel Summit in November 2010.Later, in 2011, the proposal of specific strategies concerning the supervision upon Shadow BankingConcerning the situation in our country, although there exists the Shadow Bank System, its operational forms are very simple, including the cooperation between banks and trust companies, the entrusted loans, securitizations of loans on mortgage, as well as the institutions like the companies of small loans, pawn shops, private equity fund. In general, the probability of systematic risks caused by the Shadow Bank activities is relatively small in the reason that the lever use is strictly restricted based upon the low degree of financial creativity. At the same time, with the normal supervision, the Shadow Bank, as a supplement of traditional financial organization, could provide more diverse financing channel for small and medium-sized enterprises and help to solve the present situation of difficult capital rising in small and medium-sized enterprises.Since the Reform and Opening Up, small and medium-sized enterprises play an important role in many aspects like the development of our society and economy, the promotion of the industrial innovation and the solution of the employment problems. However, the support in providing the financial capital for these enterprises is obviously insufficient. After the financial crisis in 2008,due to various elements such as the global economic slowdown, the national micro-control, more tight monetary policy, loaning from banks, and some internal factors, the small and medium-sized companies was further restricted in the aspect of financing. Quite a number of these enterprises have difficulties in capital raising, as a result, the flow of funds is too scarce to provide the needed money for production and management. It is quite common that a very famous enterprise degenerated into a bankrupt one because of the breakage of the capital chain. So to speak, the problem of difficult financing which becomes more and more worse has turned into the primary element of restricting the development of small and medium-sized enterprises. On the other hand, national shadow bank has been developing briskly with skyrocketing personal loans and cooperation between banks trust companies. Colossal capital short of investment has been drawn with high returns. They are invested into those fields without effective supervision, further raising the price of raw materials and worsening the existing environment of small and medium-sized enterprises. As a result, medium small-scale enterprises in urgency are uncap able of loaning money from banks thus turn to capital market with high interests, falling into the vicious circle. According to "the 12th 5 Growing Plan of Medium and small scale enterprises" released by Ministry of Information and Technology, medium and small scale enterprises play a significant role in our national economy ang social development. To keep the rapid and effective development of small and medium-sized enterprises is a basis in maintaining the stable and rapid development of national economy and an important strategic work connecting to citizens' life and social stability. It becomes increasingly urgent and significant to properly solve the issue of medium and small-scale enterprises financing.With such background considered, the study of this paper lay most attention on function mechanism of shadow banking system and the reason analyzing of its promotion to the financing of medium and small-scale enterprises based on the present situation of national medium and small-scale enterprises' financing and shadow banks' development as well as the study these in foreign enterprises. Furthermore, the financing issue of the enterprises is studied from the perspective of Shadow Banking System to give the solutions----strengthening the supervision on banks, assuaging the urgency of their financing. This thesis includes six parts in all. The first part introduces the background of choosing the topic and the relative research achievements home and abroad and presents the contents and structure arrangement of the paper. The second part presents the definition of the shadow bank, analyzes the economic basis of the shadow bank formation and introduces the basic theories of enterprises' financing. The third part analyzes and estimates the present situation of financing in our small and medium-scale enterprises and discusses the main elements influencing these enterprises' financing. The fourth part introduces the operational mechanism and the pattern of the shadow banking system in our country and analyzes the shadow banking system's positive influence and negative restriction upon the small and medium-scale enterprises. Part 5, basing on some real case, makes an analysis of the form of financing from shadow banking system and its main problems. In part6, a suggestion is given to strengthen the supervision on shadow banking system so as to promote the national economy.With limited data and information which can be acquired and the fact that research on shadow banking system and financing of medium and small-scale enterprises is a tremendous project. Specific and comprehensive study can not be achieved in this paper. Shortcomings might even be found in some subjects. Despite all that, by this research, it is safe to believe that promoting the financing of medium and small-scale enterprises by supervision on shadow banking system is meaningfully to be taken as a good example to the present and oncoming relative issues. |
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