On The Legal Regulation Of The Shadow Banking System In China

Since the global financial crisis in 2008, the shadow banking supervision instantly becomes a top priority of the international financial reform. There is the shadow of this new concept shadow banks from the subprime crisis to the European debt crisis, and strengthening the supervision of the shadow banking system becomes the formula of the international community on the G20 summit. Due to the continuous development of the international financial system and financial innovation, the scale of the shadow banking is growing and the type is becoming increasingly complex. A growing number of economists, financial scholars and even financial commentators have started to study the shadow banking regulatory issues from a macroeconomic perspective, and legal scholars have begun to study the issue from a legal perspective as well. By the end of 2013,General Office of the State Council issued the “Notice on strengthening the shadow banking regulatory related issues released by General Office of the State Council”; so far, China’s shadow banking financial regulation is included in the adjustment range of the law in principle for the first time. Domestic current study of Shadow Banks more focuses on the economy, the financial sector, and the law remains to be further research yet. In the process of the development of the shadow banking in China, the scope of the definition and the choice of regulatory model have always been the focus of public debate, meanwhile, the absence of the shadow banking supervision in China for long time has also attracted the attention of scholars, also forming the focus of discussion on shadow banking risks, hazards or supervision in China.This paper is divided into four parts altogether: The first part is the profile of shadow banking. It introduces the definition of shadow banking in China and its relevant organizations and analyses the common character of shadow banking to define the object of legal supervision and management of shadow banking. Owing to the difference of Chinese and western development background of shadow banking, the shadow banking operation system in China is with Chinese characteristics and its legal relation can be analyzed. And we have primary knowledge about shadow banking. The second part is the introduction to the current legal supervision of shadow banking, including the current supervision pattern of finance and its legal supervision regime. The supervision specification of shadow banking is not perfected now, and it can be seen in various regulations and documents. In the course of supervision, lots of problem can be found, which stresses the necessity of promoting the legal supervision of shadow banking. The introduction to the practical experiences of supervision of shadow banking in United States and Britain comes to the third place. Thus we can summarize its international supervision experiences and use it for reference, which is suitable for our country’s conditions. The last part is that on the basis of the current legal supervision of shadow banking and its development characteristics in our country to put forward the specific methods to perfect the legal supervision of shadow banking.