Research On The Supervision Of China’ Shadow Banking

Subprime crisis has fully exposed the complexity of the shadow banking,vulnerability and regulatory difficulties. The nonstandard operation of the shadowbanking prone to accumulate systemic risk and initiate financial crisis. Thus, in termsof financial stability, the shadow banking supervision is extremely important. Largesof reforms on shadow banking’s regulation have been carried out. Although the scale,innovation degree of the shadow banking are not as good as abroad, there are also alarge number of potential risks within the existing shadow banking system. If ignoredthe regulation of shadow banking is bound to have an adverse impact on our financialstability in the future. Therefore, the study of the regulation of shadow banking, inChina either in theory or in practice, are valuable.In addition to the preface and the conclusion of this article, the text is dividedinto four parts:The first part describes the connotation of shadow banking, the development andthe features. Combing development of the shadow banking from Chinese and foreign,and pointing out shadow banking is institutions and businesses that being separatedfrom the traditional supervision, replicating some banking functions and initiatingsystemic risk.The second part: from actual situation of our country, sorting and analyzing thecurrent situation of China’s shadow banking supervision as well as the problems.Pointing out that poly-execution, messy regulatory rules and imperfect legal systemexist in shadow banking supervision.The third part: from international regulatory reforms of shadow banking, tryingto explore the useful experience for China’s shadow banking regulatory reform. Thispart point out that facing the supervision of shadow banking, we should buildmacro-prudential supervision, concern important institutions,prevent systemic riskand keep an appropriate distance from the traditional banks and shadow banking.The fourth part is based on the first three parts. This part proposes improvementsof the shadow banking supervision: improving the regulatory philosophy, changingregulatory model and improving regulation way.