Research On The Risk Regulation Of Shadow Banks

As the pace of financial reform and financial innovation is accelerating, the structure of financial market is plural. The phenomenon of "financial disintermediation" becomes more and more prominent. Shadow banks have developed into a new marketing mode of China’s financial sector. However, because of its high leverage and the close connection with traditional banks, it may lead serious financial systemic risk. Although the development of shadow banks in China is still in early stage, comparing with foreign countries, and the function and structure are relatively simple, the financial system risk is gradually revealed as the scale of shadow banks expands rapidly in recent years. How to effectively strengthen the risk of shadow banking regulation is urgent. This paper adopts literature research, comparative analysis, logic analysis and so on, to carry out the systemic research of the existing problems in the development and risk regulation of shadow banks in China. At the time of using the experience of international regulation, aiming at the developing situation of financial market in China, it is proposing some countermeasures to perfect the risk supervision mechanism.The main content of this paper includes:(1) the theoretical analysis of the shadow banks and financial risk regulation. Combined with the research results at home and abroad, this paper defines the connotation of the shadow banks in China and analyzes the characteristics of the shadow banks at home and abroad, and it discusses related theories of the financial risk regulation, which provide theoretical foundation for later research and analysis.(2) The international reference and enlightenment of shadow banking risk regulation. It selects the regulatory measures from the developed countries to do comparative analysis, combined with the reality of our country from which can obtain the reference and enlightenment.(3) The current development and influence of shadow banks in China. This paper introduces the developing scale and various types of shadow banks, and probes into its reasons. From two aspects of the positive and negative effects which the shadow banks bring into financial system, it provides an objective evaluation of the value in shadow banking regulation.(4) The analysis of the current status and existing problems of shadow banking risk regulation in China. On the basis of introducing the risk regulatory framework of financial sector in China, it discusses the current situation and difficulties of regulation. And this part comprehensively analyses the problems and roots which causes the risk of regulation.(5) After the fore mentioned theories and deep analysis, aiming at perfecting the risk regulation of shadow banks in China, it provides specific countermeasures from the external supervision, internal self-discipline, market discipline, and financial reform etc.The main conclusions of this paper are:first, we should be selective when we use the experiences of the regulatory reform measures from the developed countries. Second, our risk regulation of shadow banks should adopt the supervision thought train of "combination of guiding and blocking", with deferential regulations. Third, the urgent problems of perfecting the risk regulation of shadow banks, need to be solved, are the construction of a new type of financial risk supervision system, the improvement of the supervision system and method, and promotion of marktizing the interest rate.The countermeasures and suggestions are as follows:first, we should perfect the external regulation of shadow banks, to correctly guide the development of shadow banks, and build a new system of financial regulation, strengthening the cooperation of international supervision. Second, we should perfect the self-discipline of shadow banks, to improve the internal risk control mechanism, establishing effective risk firewall, and improve the financial industry self-discipline mechanism. Third, we should perfect the market discipline, to strengthen the public disclosure of information, improving the regulatory laws and regulations of shadow banks. Fourth, we should actively promote the reform of market interest rate.