Home >> Working Paper
Research on the Regulation of the Third Class of Shadow Banking in China
Read        DownLoad
TitleResearch on the Regulation of the Third Class of Shadow Banking in China  
AuthorGao Xuyang and Liu Guoliang  
OrganizationSchool of Economics, Shandong University;glliu 
Key WordsShadow Banking; Securitization; Money Market Mutual Fund; Financing Business 
AbstractA theoretical model for the third class of shadow banking in China is constructed to analyze its impact on China's financial system, proposing regulatory recommendations. The third class of shadow banking offers investors chances to take on risks and get higher expected rate of return, provides an investment and financing channel for the financial system, which may improve the efficiency, and provides the bank with the convenience of improving the liquidity situation and raising the expected rate of return; it may also allow investors to take on more risks getting a lower expected rate of return, causes the loss of efficiency in the financial system, and helps financial systems absorb, hide, and cover up credit risks. It should be the direction of future regulatory reform that to strengthen the supervision of money market securities, to eliminate the phenomenon of credit enhancement, to pay attention to the characteristics of the financial market adjusting the supply of financial instruments, to monitor the quality of bank liquidity, to distinguish between balance sheet assets and off balance sheet assets and to use core tier one capital for supervision. 
Serial NumberWP1077 
  • Institute of Economics, Chinese Academy of Social Sciences
  • Copyright Economic Research Journal
  • The uploaded articles by this website express the authors’ views, not necessarily the views of this website.
  • Perennial Legal Counsel: Lu Kang (Chong Guang Law Office)
  • ISSN 0577-9154 CN 11-1081/F Postal Distribution Code 2-25l (Domestic) M16 (Overseas)
  • ICP 10211437 (Beijng)
  • No.2,Yuetan Bei Xiaojie, Xicheng District, Beijing 100836, P. R. China
  • Phone/Fax: (+8610) 68034153