Research On The Legal Regulation Of The Shadow Banking In China

The international financial crisis triggered by the sub-prime mortgage crisis of the USA has brought great destruction to the global finance and economy. In reflecting on the reasons for the financial crisis, the concept of "shadow banking system" was first put forward. And because of the important role it played in the crisis, it has achieved the attention and vigilance from the governments around the world. In recent years, the level of the innovation in the financial area has improved continuously and the pace of innovation has been accelerating. Although the rapid development of the shadow banking system has injected vitalities into Chinese financial markets, and brought it prosperity, a "blowout" development also keeps highlighting its financial risk which has become a serious threat to Chinese financial stability and security. As to strengthen the supervision to shadow banking, domestic and foreign financial legal profession has reached a consensus. Shadow Banks around the world, however, have their unique connotative features and external performances, they also have different architectures of their regulatory systems. Shadow banking in our country appeared under the special environment and background. To do a good job in legal regulation of the shadow banking in our country, in the first place we should deal with the basic theory research, scientifically analyze its connotative characteristics and the performances of the external risks, accurately define the shadow banking system in our country to find the root cause of the problem on the legal regulation. On the basis of these, by contacting the generality of the shadow Banks in other countries, we should absorb the shadow banking regulatory changes in laws and advanced nutrients from the Western countries, make the construction of the shadow banking system and the system of legal supervision system scientificly, learning from the experiences of the extra-territorial shadow banking regulation, scientific structure and institutional arrangement of the shadow banking regulation system in our country will be completed. Fortunately, in 2013, the State Council issued specifically the 107 text for the shadow banking regulation. The State Council issued the 107 text in the form of official documents to describe the basic outline of the shadow banking and its supervision for the first time in 2013. In this paper, I will start to discuss from the definition of the shadow banking system, on the basis of the in-depth analysis of its connotation features, and its outside influences and risks, and learn from the international regulatory experiences, aiming at trying to put forward some specific comments on our legal regulation of the shadow banking. The whole text is divided into five parts:The first part describes the basic theories of shadow banking. In this paper, it starts from the generation and historical evolution of shadow banking, which leads to the international and domestic typical definitions of shadow banking. On the basis of the further analysis of the external characteristics of the shadow banking and the causes, there comes gradual clearance of the shadow banking connotations and denotations, which will identify the studying objects of the legal regulation of the shadow banking,Pave the way for the further study of China’s shadow banking laws.The second part of the system analyzes the necessity of the shadow banking supervision. The shadow banking risk of strong concealment and highly infectivity once outbreak, it will be likely to have a negative impact on Chinese economy and finance, which is also the fundamental reason and the necessity to strength the shadow banking supervision.The third part has analyzed the current legal and regulatory elements of the shadow banking, summarized the existing problems. On the basis of the description of the regulatory status quo on the current shadow banking laws, it summerized the deficiencies in the regulatory ideas, system design and technical means, indicates the problems and direction to improvement of our shadow banking supervision laws.The fourth part mainly introduces the foreign practice of shadow banking regulation and its change. As shadow banking system was originated from abroad, advanced experience and practice of the shadow banking supervision from foreign countries must be carefully observed and used for reference and innovation to improve the deficiencies of the domestic shadow banking supervision.The fifth part shows some thoughts and suggestions on the legal regulation of the shadow banking, on the basis of careful analysis of the institutional mechanisms of the shadow banking supervision at home and abroad, it draws the reflections on Chinese shadow banking supervision objectives, concepts and means. With the reality of our country, and the basis of drawing lessons from foreign advanced experience, it puts forward constructive suggestions on the present and future shadow banking regulation in our country.