This essay argues that at least some of the financial stability concerns associated with shadow banking can be addressed by an approach to financial regulation that imports its functional foundations more vigorously into the interpretation and implementation of existing rules. It shows that the...

1. A basic theory of shadow banking -- 2. The emergence of Chinese shadow banking and where it stands today -- 3. Financial institutions supervised by the "three commissions" and their businesses -- 4. Research on quasi-financial institutions and their businesses : regulation by ministries,...