Shadow Banks And Chinese Financial Resources’ Market Allocation Research

Shadow banking was born in America in the1970s, develop and swell withfinancial liberalization, however, it didn’t caught the attention of people, until theoutbreak of the financial crisis in2008made the shadow banking which under the"shadow" hidden system exposed. Shadow banking’s problems such as lack ofattention to the risks and regulatory, gradually become a focus of research scholars.China has a shadow banking system, different of the United States developed theshadow banking system, the shadow banking system in our country is under thebackground of regulated interest rates and resource scarcity credit environment,undertake the function of connecting the money market and savings and loanmarket,act as the intermediary operation system. It is the product of the marketizationof financial resource allocation,and is the alternative and complementary of traditionalbank credit, what’s more it reflects some problems like China’s financial system is notperfect, financial reform lag, etc.Main reasons of Chinese financial marketization of resources configuration berestricted: First of all, allocation of financial resource under the state administrativedistort the market competition mechanism market. Secondly,the control of interestrate make the market failed to forming a rational pricing mechanism of funds.Thirdly,the unperfect financial market system can not reasonably allocated by the financialmarket in the supply and demand of funds. Lastly the unperfect financial microcosmicmain body cause the financial resources can’t effectively improve efficiency betweenusers. On one hand, shadow banks is the the reasonable requirements and result ofallocation of financial resources market emergence and development, on the otherhand,the development of shadow banks also promote our country’s prefiction offinancial market allocation of resources and promote the process of marketallocation of financial resources.Based on this, this paper researches on the relationship between Shadow Banks and financial marketization of resources allocation in China. Based on the high lever,term mismatch and not affected by or less regulated characteristics of shadow Banks,to explore China’s shadow banking interaction of marketization of financial resourceallocation and the development countermeasures of the shadow banking in ourcountry. At different levels according to the regulated, this article will divideShadow Banks in China into three types: the first is completely free from theregulation of private credit intermediary institutions, including folk lending, Internetfinancial; The second, take less regulated by the China banking regulatorycommission approved the establishment of non-bank financial institutions, such assmall loans, guarantees, etc.; And the third is to avoid the traditional bankingregulation "shadow" banking business, including bank financial products. Shadowbanking emerged along the marketization of financial resources allocationrequirements with the system, its development promotes the marketization offinancial resource allocation, and both supplement each other. In the process of themarket development, there are more and more chaos and potential risks showed up, toput forward for the regulation of the shadow banking system should use ofmarket-oriented means, specific regulatory measures include: unified financialregulatory framework, improve information transparency, relax administrativefinancial regulation, improve the financial supervision legal system construction,actively participate in the international financial supervision coordination andcooperation, strengthen self-discipline of the financial industry and the internalcontrol, regulate the development of the shadow banking in China.