The Development Of China’s Shadow Banking Regulatory

In the context of the financial crisis triggered by the economic crisis sweeping the globe, financial security should be the starting point and goal of the world’s financial market supervision. With a large number of China’s financial disintermediation and off-balance sheet assets, the shadow banking rapid development of credit not fully reflect the supply and demand of credit funds of the society as a whole. The shadow banking development on the one hand to promote financial innovation, but on the other hand, brings new financial risks. The development of the shadow banking system, improve the operating efficiency of the financial markets, but its negative effects can not be ignored. Shadow banking adverse impacts and risks to the financial system supervision of the growing importance of emergent. To illustrate the four main aspects of the development and its regulation of shadow banking in China.The first part of the "shadow banking" concept in detail."Shadow banking" system originated in the United States, the parties have different definitions, but they all have a common characteristic, that is similar to the traditional bank credit business credit business; financial innovation to circumvent existing regulation. Also because of its to circumvent regulatory characteristics lead to the generation of the2008economic crisis in the United States. From the perspective of the development of China’s "shadow banking", with the United States and other countries vary."Shadow banking" in our country’s development and growth with its reasonableness. From a business perspective, businesses in recent years financing gap gradually expand the urgent need for financing problem by the channel financing role of the "shadow banking"; residents point of view, in recent years there has been a trend of negative interest rates and interest rate markets to promote forcing residents buy financial products, such as to reduce the losses.The second part of a detailed analysis of the various components of the shadow banking system in China. Bank-led internal shadow banking system, including:financial products, entrusted loans, the undiscounted bankers’ acceptances, bank-trust cooperation, silver certificates, peers and pay. For the first three analyzes its size and risk analyzes its innovative and avoid the ways and means of supervision for the latter three. Followed by a wide range of private financing system, including:small loan companies, pawn shops and underground banks and other private financing, this part of the to do brief description of its size and risk. The third part of the system is given "shadow banking risks and regulatory analysis. From a risk point of view, China’s shadow banking risks mainly include:the systemic risk in the credit chain, congenital lack of funds to invest in and the risks of financial and credit intermediaries. Regulation of "shadow banking" is nothing more than sources of funds, the use of channels to begin.Section IV analyzes the regulatory lag and to avoid the development of the Chinese-style "shadow banking" the background is largely financial system. Shadow and the United States, China’s shadow banking part of the reason can be attributed to avoid regulation, but it is undeniable that the most important purpose of the background or is that China’s financial system failed to meet the the entity economic development and the needs of investors, so the future of China’s shadow banking With the advance of China’s financial reform process, and gradually grow and develop and gradually regularized.