The Development and Regulation of Shadow Banking

Since the end of last century,the shadow banking has developed rapidly and nearly reached the scale of the traditional banking system.The risk of shadow banking has been considerd as the key reason of the financial crisis in 2008.Governments and international financial institutions have taken measuers to enhance supervision and regulation of the shadow banking system in recent years to change the status of regulation vacuum.The main function of shadow bank in China is financing instead of securitization accured in foreign shadow bank.We should have the right attitude on the role of shadow banking and try to make it as the useful supplement of the regular banking system on the base of the foreign experience.