Research On Shadow Banking Regulation

In 2008, the outbreak of international financial crisis triggered the world’s attention to the shadow banking system. Before the crisis, because the shadow banks with excessive trading and vigorously innovation in these countries, people excessively trust the shadow banking financial innovation and market self-regulation, while ignoring the risk of its existence, resulting in an accumulation of potential risks, and ultimately lead to international systemic risk, resulting in the global financial system imbalances. After the crisis, the academic study of shadow banking set off the boom, each country began to critically examine its financial system, monitoring the shadow banking system itself, studying the regulatory control method.Compared with the United States and other developed countries, the shadow banking system of China still at an early stage,.They compensate the shortcomings of traditional financial institutions, alleviate the problem of financing difficulties of SMEs and promot financial innovation, has a positive effect to China’s economic development, but shadow banking system’s own vulnerability and risk still needs regulatory authorities’ attention. In October,2012, the risk of IMF annual meeting worte shadow banking risk in Global Financial Stability Report. In 2014, the State Council issued a document on the problem of shadow banking supervision, named document No.107, which defines not only the Chinese shadow banking and its classification relevant concepts, and a clear requirement Chinese shadow banking regulatory issues. Fast speed of development of the shadow banking has made shadow banking from a marginal role gradually transformed into a force to be reckoned.In this paper, I study the shadow banking supervision, firstly,I compared the difference between China and other country including the definition, driving force, feature and influence. Then this paper summarized regulatory measures in mainly country:expanding regulatory objectives; stringent regulatory standards; establish risk isolation firewall; guard against moral hazard. After the paper establishes SARIMA model to predict the size of the shadow banking, using the IRF model to study the relationship between economic variables and shadow banking Finally, according to the characteristics of the shadow banking, proposed recommendations to guide and regulate private finance, promote the healthy development of the shadow banking, to make it play an active role in China’s financial system.