Research On Legal Issues Of Supervision On Shadow Banks

Excessive development of the shadow banks is the main reason the2008global financial crisis triggered. Under the new pattern of the financial system, to strengthen macro-regulation of the shadow banking system has become the focus of national regulatory reform. At present, there is a big gap between our shadow banking and international shadow banking in form, content and risks, with significant "Chinese characteristics." Chinese governor has always implemented strict administrative controls on the financial sector, which led directly to the emergence and expansion of the shadow banking. Shadow banking as an important complement to our formal banking system can effectively meet the market multi-level, diversified financial need, and play a key role in promoting the development of China’s real economy. However, the existing regulatory framework and financial system lagged behind financial innovation, shadow banking has become the main tool of speculators for regulatory arbitrage, seriously hinder the rapid development of China’s financial area. Therefore, we should reform our traditional financial system, recognize and maintain the important role of shadow banking, and gradually liberalized financial restriction while stick to the bottom line of the non-occurrence of systemic financial risks, give the full play to the positive role of the shadow banking, to guarantee the stable development of China’s financial markets. The paper take the legal supervision on shadow banks as the theme, shadow banks as the main line, along the research methodology of "Theoretical analysis-Problem analysis-Suggestions" to expand my discussion, which is of great practical importance to our society.The dissertation makes a detailed description of the concept, the basic characteristics and its impact on China’s economy of shadow banks, defined the main features and nature of shadow banks, and after comparing the contents of the other countries of the world financial regulatory reform, combined with the practical problems of the existing legal regulation of the shadow banking system, put forward some concrete improvement measures, in order to properly guide the development of China’s shadow banking, prevention of systemic risk in the financial system, to achieve integration with the international trend of regulatory reform.The thesis is divided into four chapters:Introduction.This part mainly introduces the source of the selected topic, significance as well as the overall framework and research methods, and combs the research achievements of domestic and foreign scholars on the issues of shadow banks.The first chapter is about the overview of the shadow banks, briefly description the definition, and basic characteristics of shadow Banks as well as the positive and negative impact on China’s economy. Firstly, combined with different research perspectives and concepts of scholars at home and abroad, this paper conduct a detailed concept analysis of the shadow banks, and summarizes its basic characteristics, reveals the essence of shadow banking, finally study the impact on China’s economy, affirming the rationality and necessity of the existence of the shadow banks. Believe that we should encourage the development of the shadow banks simultaneously to guard against financial risks caused by it.The second chapter mainly describes the regulatory reform practice of other countries and the enlightenments, By summarizing, analyzing and comparing the financial reform of the United States, Britain, the European Union and international organizations, to summary up advanced foreign regulatory model and experience, establish the future trend of international regulatory reform, which provides a strong reference for future reform of the financial regulatory system in China.The third chapter is to analyze the current situation of China’s shadow banking regulators and the outstanding problems. Making a deep analysis on the existing status of Chinese-style shadow banks, and find the inadequacies of the financial regulatory system, in order to lay a solid foundation for improving the regulation of our shadow banks.The fourth chapter is to make some suggestions for addressing the above problems. Firstly, we must change our traditional regulatory philosophy, realizing the transformation for functional supervision. Secondly, set up the basic principles of appropriate regulatory and prudential supervision to achieve the legalization and rationality of financial regulation. Thirdly, we should be on perfection of the shadow banks, pay more attention to protecting financial consumers, and enhance the risk management capabilities. Finally, to strengthen the global financial cooperation and coordination regulation, building the macro-prudential regulatory framework.