Risk and Legal Regulation of Shadow Banking:Chinese Notion and American Lessons

Although shadow banking became an important issue in China financial and legal practice,it hasn ' t attached enough research in academic world. If there is not sufficient theoretical analysis on shadow banking,certain risks comprised in shadow banking system,such as credit risk,liquidity risk and systemic risk,not only caused the systemically financial crisis in American, also will occur in China financial system. Therefore,it is necessary to explicate the definition of shadow banking out of practical and theoretical consideration,discuss shadow banking ' s forming background and economic reasons as well. Moreover,it is possible for the regulators to propose a series of enforceable financial regulation mechanism,only when we clarify those fundamental issues, especially focusing on the legal regulation. Furthermore, regarding shadow banking, American has accumulated abundant experiences,theories and regulations,it is evitable this article applies comparative jurisdiction research method to learn lessons from the American experience.