Research On The Regulatory System Of Shadow Banking

Shadow banking system is a non-bank shadow financial system which long-term exists in the shadow of regulation. It attracted people’s attention just after the subprime mortgage crisis,and at this time shadow banking system has developed and grew for more than20years. Most scholars believe that the outbreak and deterioration of the financial crisis is caused by the excessive expansion shadow banking system. Although shadow banking system has some positive significance in promoting the development of financial markets, less subject to regulatory can easily lead to regulatory arbitrage and other systemic risk issues. Risks of shadow banking system mainly lies in the high leverage, regulatory arbitrage, credit creation, and the damage for financial consumers because of the information opacity.For China’s financial markets, due to the low openness,the impact of financial crisis is not serious as western countries, but the shadow banking system and the business has begun to develop,inherent risks are gradually emerging,and it can not be ignored. The work of regulating shadow banking should also recognize that it is a double-edged sword, if allowed it to proceed freely without regulation, it might trigger the risk of entire banking system, and financial system stability might be destroyed; but if the regulation is too strict, financial innovation may be suppressed, and the development and progress of the financial system could be curbed.Although putting the shadow banking system into the regulatory has been recognized in most countries, but the "shadow banking" as a new term which was produced a short team, its academic connotation, denotation, the nature and characteristics are not yet quite clear defined at home or abroad. After the first demonstration in the United States and other countries and international organizations such as FSB,to build the shadow banking regulatory mechanism has become the focus of national financial regulators。Shadow banking as a regulate object,if we can not accurately define its concept, the regulatory framework can hardly arise.Therefor, part1of this article is on the basis of summarizing the domestic and foreign theoretical researches related to shadow banking system, deeply discusses and analysis its concepts and characteristics.Then, followed by the, according to the special nature of China financial markets,this part tries to list the "Chinese characteristics" shadow banking manifestations.Part2of this paper tries to clarify the need for the establishment of the shadow banking supervision mechanism. First, the shadow banking risks are analyzed, demonstrated the shadow banking system is under the regulation must complete the task. Secondly, according the analysis of current situation of the world, especially the shadow banking regulatory developments in our country,the writer clarifies the necessity and urgency of building shadow banking regulatory framework.In part3, this article selects the United States and FSB as object of comparative study, both of them has established a mature shadow banking regulatory mechanism. By summing up the two forerunner excellent experience in building shadow banking supervision mechanisms, the writer summarizes future trends of the shadow banking regulatory system.Part4discusses the experience of enlightenment in the U.S. and FSB shadow banking for our country on establishing regulatory mechanism. And proposes the idea to build China’s own shadow banking supervision mechanism our country’s national condition. The idea can be conceived from many aspect,such as establishing regulatory principles, selecting regulatory mode, and formulating regulatory measures, etc.