Research On Systemic Risk Of Financial System

U.S. subprime mortgage defaults triggered the outbreak of the subprime crisis,and the risk spread to the world, directly and indirectly led to the emergence ofsovereign debt crises, academia and regulatory authorities of the world economic andfinancial system are surprised for the huge impact of the shock, which made scholarsstarted research for systemic risk again. Then the paper selected SIFIs perspective toexplore the issue of systemic risk.Now due to the emphasis on research of systemic risk from a specific perspective,and also due to rising acquaintance of SIFIs, more attention to its regulation; andclearly understanding of the defect proposed by micro-prudential regulatoryframework, and with the appearance of macro-prudential regulatory framework, underthis phenomenon, there is a urgency to start a theoretical study of systemic risk inSIFIs perspective, and we also have got all the conditions we need.Domestic and foreign scholars and regulators for systemic risk and SIFIs hasbegun extensive and in-depth research, is due to come to the systemic risk within thefinancial institutions, especially in the presence of SIFIs structure, institutionalarrangements, management and other aspects of defects caused, and after the outbreakof the risk, which was passed debts channels and information dissemination channelsfor the stable operation of the financial system pose a threat to the real economy andmay cause losses conclusions. But unfortunately most of the SIFIs existing literatureand systemic risks discussed separately, only for a particular aspect, the lack of aglobal understanding of the framework and the existing literature for our domesticSIFIs bring less systemic risk. This article is undertaken in the context of such studiesto explore the important role of SIFIs systemic risk in the process of formation andinfection play, providing ideas for the prevention and management of systemic risk,and as a basis for risk prevention and SIFIs control measures to integrate, analyze thepros and cons of existing regulatory and disposal measures internationally, and becombined with the reality of the situation analysis, pursuant to identify the country ’slast four SIFIs, and to analyze the causes of systemic risk and the status quo, whilepropose appropriate policy recommendations based on international experience, to ensure stable operation of China’s economic and financial system.From the perspective of SIFIs cut systemic risk study of the financial system forthe study and exploration of systemic risk has opened up a new path. At the same timedue to the proposed late SIFIs, academic research is not its depth, at this stage onSIFIs for systemic risk research literature is not rich, and international regulatoryauthorities for the SIFIs supervision and prevent systemic risk issues not reachedconsensus, this article attempts to analyze SIFIs and systemic risks in the frameworkof the generation and transmission channels, and measures based on internationalregulatory framework comparison, for China ’s specific national conditions for SIFIsregulatory proposal in order to achieve the purpose of systemic risk prevention China.The main structure of the content of this article is:The first chapter is an introduction. This chapter is the foundation chapter of thispaper introduces the research background, research progress theoretical and practicalsignificance of the paper, describes the main content and research methods, andpointed out the inadequacies of innovation and papers.The second chapter is about the financial system, systemic risk and SIFIs’overview. This chapter begins with the concept of systemic risk related to define,along with the mechanism of generation and propagation of systemic risk analyzesystemic risk for the formation of macroscopic understanding. Then describes theconcepts SIFIs, and compares their determination and recognition.The third chapter is the impact SIFIs systemic risk to the financial system. Thischapter is the core theory framework of this paper. First expounded the basic conceptsand theoretical basis of systemic risk, followed by analysis of the global SIFIs togenerate systemic risk impact and analysis of the global SIFIs conduction role forsystemic risk, and the last is the summary.Chapter IV states systemic risk using subprime crisis as an example, emphasingthe effect of SIFIs. This chapter is a global SIFIs empirical study of systemic risks tothe banking system. Analyzes the causes of the subprime crisis generated in systemicrisk in the banking system, and emphasizes the role of global SIFIs and global SIFIscommunication channels for systemic risk impact. Second, on the basis of the aboveanalysis to summarize and, finally, the subprime crisis gives us inspiration and experience.The fifth chapter is a comparative analysis of the international global SIFIssupervision and systemic risk prevention. This chapter discusses prevention can bedivided into pre-and post-treatment in two ways. In advance prevention effortsinclude the establishment of the Basel Ⅲ development and macro-prudentialframework in this process by comparing the new Basel Basel Ⅲ, macro-prudentialand micro-prudential supervision of the banking system to indicate the transfer of thecenter of gravity. Afterwards governance of global SIFIs mainly for risk identificationand assessment, to stabilize the agency’s programs, self-help program, a liquidationplan, as well as cross-border supervision and information transmission. Finally, acomparative analysis of methods for centralized advance prevention and post-treatment in accordance with the above analysis.The sixth chapter analyzes systemic risk in the banking system in China. Thischapter first presented to the Chinese SIFIs identifies ways to establish a CommercialBank of China, China Construction Bank, Agricultural Bank of China and Bank of thestatus of China’s domestic SIFIs. Secondly, it analyzes the characteristics of theChinese SIFIs, and the corresponding systemic risk analysis. Finally, measure theimportance of China’s listed banks in the system through CoVaR method to analyzethe impact of systemic risk for China.Chapter VII of systemic risk-based preventive measures SIFIs. This chapter isthe conclusion of the chapter describes the first stage of China’s regulatory measuresfor SIFIs, then according to the characteristics of SIFIs and international regulatoryexperience, combined with China’s actual conditions; make policy recommendationsto prevent systemic risk in the Chinese banking system.