Abstract：With the deepening of economic globalization, as well as financial derivatives appearing in large numbers, the number of shadow banking is increasing, and the scale of the shadow banking has been expanded rapidly. Since the financial crisis, around the world continue to strengthen the study of shadow banking issues. Being an emerging credit creation system, the shadow banking system is closely combined with the traditional banking sector and function approximation, but it also has high leverage, maturity mismatches and not subject to financial monitoring, which make itself a not-standard development and easier to have impacts on financial stability. In recent years, the shadow banking system has developed rapidly in China and become a force which cannot be ignored in the China’s financial system. With the increasing size of shadow banking credit, arbitrage has gradually formed. Lack of financial supervision and legal constraints, development of shadow banking is difficult under control, and has seriously affected the country’s financial market. Therefore, in order to improve our financial markets and regulate our financial system, it has become an emergency to tighten the regulation of shadow banking. Therefore, we should be fair and objective to the shadow banking, through the in-depth study of shadow banking, to explore its own problems, and propose appropriate measures to solve, thus continue to regulate the number and size of the shadow banking, and guide the healthy development of the shadow banking, and thus continue to strengthen financial innovation, improve the financial system.
Key words: shadow banking; financial stability; financial supervision