The Shadow Banking System and Its Impacts on Financial Stability

Since the new century,the shadow banking system has experienced a dramatic growth and built up highly prosperous financial markets both in America and the world.In the process of the development of shadow banking system,the financial structure,market composition and financial regulatory system have been changed essentially.Meanwhile,the important factors of shadow banking system,such as high leverage,vague business boarder,excessive financial innovation and anti-regulatory,have brought many news challenges to the financial system,even systematic risks both to the American domestic market and the international financial markets.During the infection course of the global financial crisis orientated in the subprime mortgage crisis in America since 2007,the shadow banking system has demonstrated its essential impacts on the financial system and the financial stability as well.