What Is a Shadow Banking System?

According to the definition of the Financial Stability Board, shadow banking refers to a credit intermediary system (including various related institutions and business activities) that is outside the banking supervision system and may cause systemic risks and regulatory arbitrage. The factors that cause systemic risk of shadow banking include four aspects: term mismatch, liquidity conversion, credit conversion and high leverage.

Shadow bank

(Financial concept)

The concept of The Shadow Banking System was developed by the United States

The first is the shadow bank itself,

From a worldwide perspective, the "shadow banking" system is mainly composed of four parts, namely: securitization institutions, whose main function is to securitize traditional financial products; market-oriented financial companies, mainly including hedge funds,

Because banks urgently need to improve themselves

The basic characteristics of shadow banking can be summarized as follows.

First, the transaction mode is wholesale, which is different from the retail mode of commercial banks.

Second, opaque OTC transactions. Shadow banking

In recent years, the "shadow bank" has made the Chinese understand a few things:

With the continuous growth of the US economy, people's demand for credit is increasing day by day, and the shadow banking in the United States has also developed rapidly accordingly. Together with commercial banks, it has become an important participant in the financial system. The development of shadow banking has made the United States and

At the current level of financial market development, if it is defined very broadly, it will easily lead to the suppression of financial innovation activities. If all financing channels other than bank loans are defined as shadow banks, it may lead to a contraction in social financing, which may be a financial shock to the bottoming out of the economy that began in the second half of 2012. At present, we see that there are many increasingly bold predictions that the scale of shadow banking is 10 trillion or even 40 trillion, which has even caused the international financial community to worry about the stability of China's financial system.

According to data released by the Central Bank on January 15, 2015, as of the end of December 2014, the broad money (M2) balance was 122.84 trillion yuan, a year-on-year increase of 12.2%, which was lower than the previously announced 13% regulatory expectation. In addition, RMB loans increased by 697.3 billion yuan in the month, far lower than the 800-900 billion yuan expected by the market.

It is worth mentioning that, although many foreign investment banks previously called on the People's Bank of China to adopt further monetary easing policies in a timely manner, a series of economic data for December 2014 were not optimistic, but while the data was released yesterday, the Central Bank still passed another The press release conveyed the determination to "continue to implement a sound monetary policy."

In addition, a reporter from "Daily Economic News" found that according to the calculation of the central bank, shadow banking heated up again in December 2014, and social financing-related indicators all soared sharply in December. At the same time, new loans in December only accounted for the total amount of social financing in the month. About 41%, compared with 74% in November.