For example, some institutions circumvent macro policy and financial regulation in the name of asset securitization, but do not actually sell the assets, nor maintain bankruptcy remoteness. This is the risk that should be noticed. Shadowing banking sounds pretty risky, but well-regulated shadow banking business is a necessary supplement to the financial market. Hence shadow banking is not an absolutely negative concept.
As long as business operations are conducted in accordance with laws and regulations, all of the business can become necessary supplements to the financial market, be it on-balance-sheet or off-balance-sheet business, trust funds, publicly offered funds or private equity funds. The fourth risk is illegal financial activities. Some unlicensed institutions and individuals raise funds illegally through the Internet in the name of innovation.