The Research On The Legal Issuse Of Supervision On Shadow Bank

Shadow Banks, means the shadow of banks. like banks, They have creditintermediary function, but they are not under strict regulation, so we call themshadow banks. In western developed countries, they have the feature of highsecuritization, and almost all of the shadow banks institution or business are involvedmore or less in securitization. Shadow Banks in China, by contrast, is more like asubstitute for traditional banks, they act as credit intermediary in the field wheretraditional banks has not covered.With the implementation of the national policy onserving entity economic. Shadow banks have sprung up in China but because of theirshort-borrowed and long-lent operation pattern, such characteristics as high leverageand opaque, shadow banks lurk in huge liquidity risk in the process of its running, oncebreak out, the consequence will be unimaginable. The outbreak of the financial crisis in2008is a good example. The negative effect of shadow banks can be explained byexternal effect theory and catastrophe theory. Shadow banks’ negative external effect isthat they can affect the effectiveness of monetary policy, and that they can also misleadthe financial consumers.The laws and regulations to control the risk and harm haven’tbeen perfect,and he relevant supporting system supply has not been offered quitewell,and the cooperation between supervision apartments is not coordinateenough.therefore, we need to improve the relevant laws and regulations of shadowbanking supervision,Identify the object,subject and principle of supervision,ensure thesupply of important legal system,strength the coordination among the regulators,improve the law relief system of financial consumer.Only in this way, can we promotethe healthy development of the shadow banking system, and improving the capacity ofserving the real economy.