Shadow Banking, Financial Risk and Regulation in China

Hang Xia

Diplomová práce

Anotace:

Abstract: The thesis is devoted to the analysis of the shadow banking, financial risk and regulation in China. The objective of the thesis is to identify both the positive effect of the shadow banking and more importantly the potential risks of this activity. The results will help the investor and the authority to understand the Chinese shadow banking problem comprehensively and systematically. And the possible solutions we have suggested to enhance the regulation and reduce the risk can somehow help the investor to make the decision. We have use the comparison method and qualitative method which we have investing the case of shadow banking in Chinese economy. We can conclude that the shadow banking on the one side can act as a complement to the traditional banking system; shadow banks play an active role in serving the real economy and enriching investment channels for ordinary citizens. On the other side, it has been argued that shadow banking is not properly regulated, and its size and rapid growth does raise debt levels and make credit flows less transparent and more risky. We suggest the tightening of the regulation imposed on WMPs management and increase the collaboration between banks and trust companies. And it could be a possible solution to implement the stress tests on banks and disclose the results to the public and to reform banking regulation and interest rate liberalization.

Abstract:

Abstract: The thesis is devoted to the analysis of the shadow banking, financial risk and regulation in China. The objective of the thesis is to identify both the positive effect of the shadow banking and more importantly the potential risks of this activity. The results will help the investor and the authority to understand the Chinese shadow banking problem comprehensively and systematically. And the possible solutions we have suggested to enhance the regulation and reduce the risk can somehow help the investor to make the decision. We have use the comparison method and qualitative method which we have investing the case of shadow banking in Chinese economy. We can conclude that the shadow banking on the one side can act as a complement to the traditional banking system; shadow banks play an active role in serving the real economy and enriching investment channels for ordinary citizens. On the other side, it has been argued that shadow banking is not properly regulated, and its size and rapid growth does raise debt levels and make credit flows less transparent and more risky. We suggest the tightening of the regulation imposed on WMPs management and increase the collaboration between banks and trust companies. And it could be a possible solution to implement the stress tests on banks and disclose the results to the public and to reform banking regulation and interest rate liberalization.

Klíčová slova

Shadow banking, Financial regulation, Wealth management products, Financial risk, Financial repression, Trust products, Securitization, Financial innovation.

Keywords

Shadow banking, Financial regulation, Wealth management products, Financial risk, Financial repression, Trust products, Securitization, Financial innovation.

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 25. 4. 2015

Obhajoba závěrečné práce

• Obhajoba proběhla 28. 5. 2015
• Vedoucí: Zuzana Kučerová
• Oponent: Josef Novotný

VŠB - Technická univerzita Ostrava

Ekonomická fakulta

Magisterský studijní program / obor:
Hospodářská politika a správa / Finance