The Shadow Banking System and Financial Regulation Reform

The appearance of the shadow banking system brings important changes to American financial system.In fact,it forms a new credit system.But due to its characteristics and its inner financial innovation on account of the financial regulation,the shadow banking system was out of the financial regulation before the subprime crisis occurred.After the subprime crisis broke out,many regulation reforms aiming at the shadow banking system were put into practice.Not only should regulation reforms make up the flaws,but also set out some relevant rules to make the shadow banking system develop healthily.And we can not cancel the shadow banking system for the potential risks.