The Research Of Shadow Banking On Legal Supervision

Shadow banking has become one of the hottest researches in the process of analyzing the causes of the global financial crisis which was broke out in 2008. It is wildly believed by scholars and regulators that the shadow banking have disadvantages such as high leverage, systemic risk, regulatory arbitrage, which will impose potential risks on the steady development of the financial market. Therefore, they believe that it is vital to strengthen shadow banking supervision in the future.In the analysis of the development path of China's shadow banking, reference of the shadow banking act or proposal from financial power and international organizations are useful, however, flatly grafting may run counter to one's desire. Objectively speaking, this kind of lax supervision institutions, products and activities have reflect the characteristics of our country's supervision which are dominated by administration, and the idea is stay at how to maintainfinancial stability and protect the market security level, which lead to the adverse situation behind the pace of financial innovation supervision. While the western financial developed countries have been developed for several centuries with the free banking spirit, the financial market is embodied in the role of service, so the shadow banking has grew to asset securitization characteristic stage. Even if Western countries proposed the idea abouf'put the shadow banks into the regulatory frame work", which means strengthen the government intervention in the perfect financial system on the basis of existing, effective prevention and control of risk rather than abandon the old idea of the free market. To deal well with the relationship between standardization and development, China's shadow banking supervision need to encourage the transformation of the financial sector, rather than copy the experience of other countries simply. So China's shadow banking need to change the traditional regulatory thinking mothes in the future to maintain its vitality, and clarify the scope of shadow banking,perfecting information supervision, lender of last resort and other content to creat fair, standardized legal environment for shadow banking and give full play to its advantages, which will make sure that our financial market can develop in a stable and orderly way.