China Shadow Banking Regulation Research Based On The Asymmetric Information

In recent years, shadow banking have having more and more important effect on the economiclife in all aspects. Because of information opaque lead to the existence of asymmetricinformation, the influence of shadow banking is not totally positive, therefore, it is an urgentneed for the shadow banking regulation to improve the shadow banking informationtransparency and to reduce the information asymmetry. With the rapid growing of shadowbanking, the regulatory authorities have repeatedly referred to the shadow banking regulation, forinstance, in the end of2013the state council general office issued the notice on strengthening theshadow banking regulatory issues related to the guidance of the shadow banking supervision;night of march13,2014, the central bank issued an emergency file suspended pay-and-escrowoffline payment and virtual credit card products.First of all, the paper based on wrong information, according to the information transparency，this paper divide shadow banking of our country into two categories, shadow banksⅠandshadow banksⅡ, and study the development and conversion relationship between the traditionalcommercial banks and the two types of shadow banking, found through incentives and marketconstraints will promote shadow banking information transparency, reduce the negative effects toshadow banks because of the information opaque. Second, on the base of the shadow bankingsupervision status of our country found that the strict separation of regulatory model does notconsider incentives and market constraints, unable to solve the mixed management trend ofshadow banking information opaque, shadow banking regulation has many defects. Finally,based on the asymmetric information in the information economics, principal-agent andincentive mechanism design knowledge, combined with the new development of the theory offinancial regulation, namely, mechanism design, incentive regulation, incentive compatibility,financial function view, consider the shadow banking self-discipline and market discipline, set upunder the incentive mechanism of functional regulatory framework. The regulatory framework toadapt to the trend of mixed management in financial industry, is advantageous to the realizationof shadow banking information transparency, promote the further development of China’sshadow banking; at the same time, the framework provides a new idea of financial supervision,to provide theoretical reference for China’s financial supervision mode change.