Research On Risk Supervision Of Shadow Banking

With the emergence of the so-called disintermediation type of creditcrisis around the United States and Europe countries in the late last century,Chinese financial system has also appeared some serious problems, such asinsufficient funds, lack of credit loans, the decline in bank’s revenue evencollapse. In order to cope with the crisis better, the government has relaxedthe restrictions to the various departments of banks on a very large scale, andthe fierce industry competition created a wave of financial innovation. Alarge number of financial products formed after another as well as financialinstruments and the new mode of operation in financial organizations, the"shadow banking" system was gradually formed in this process. TheDevelopment of our shadow banking is very rapid in recent years, howeverthe rapid development pace of the shadow banking, also threatens the stabilityof financial system development. Therefore, it is necessary to research thecurrent development situation of shadow banking, the impact on the financialsystem and regulatory aspects.This paper uses qualitative methods to analyze the development situation,characteristics and development trend of Chinese shadow banking, and on thisbasis, it applies to the empirical methods to analyze the relationship betweenthe size of the shadow banking and financial systems, the result is that theshadow banking has an important effect on the stability of the financialsystem. Specifically, the relationship between the two is not promotion orobstruction simply, but shows a U-shaped effect. That is to say, beforereaching the stability critical points of12.79trillion RMB, an increase of thesize of the shadow banking can contribute to the financial system. If exceeds12.79trillion RMB, it will restrain the development of the financial system.Based on the analysis of the development situation of the shadowbanking and its influence on Chinese financial system, the paper alsodescribes the supervision condition and problems of Chinese shadow banks indetail. In view of the successful experience of foreign countries, it putsforward a sound relevant advice to improve the regulation of the shadowbanking：(1)From the point of market regulation, to improve public information disclosure system of the market and the financial supervisionlaws and regulations of shadow banking.(2)From the point of self-discipline,to perfect the internal control system construction of the shadow banking andfinancial industry self-discipline system construction.(3)From the point ofmain regulatory, to establish the concept of functional regulation, andcorrectly grasp the link between innovation and regulation.