Study On Banking Systemic Risk

In 1990抯,the repeated systemic risk triggered by the high frequency of bank incident and hazard has caused much concern in the economic and financial circles and also attracted by the world-wide attention. Experts in other countries have made efforts to probe the problem of the bank systemic risk and made some contribution, but still need further profound research. In China, the study of this subject is still at the beginning, and has not made systematic and thorough study yet. This dissertation intends to delve into a rather realistic and theoretical approach to show a systemic analysis of this problem. I am of the opinion that the partial reserve system of the current monetary regime is the fundamental reason of the banking systemic risk and the world financial integration and various new financial engineering instruments are the external factors. The dissertation consists six chapters. Chapter one is the introduction, which focuses on the concept of the bank systemic risk, its nature, classification, feature as well as the discrimination of this risk. Chapter two and three probe into the mechanism of the formation and propagation of this risk. These two chapters also provide the micro-transmission of the systemic risk, and research in payment and settlement systems, financial structure and development, and the corporate sector dynamics. Meanwhile, I make a close study on the macro-transmission mechanism of this risk, and give an independent judgement on the connection between credit currency system, capital circulation and bank systemic risk. Chapter Four tried to estimate the bank systemic risk which mainly discusses the method and technology of risk calculation and provides theoretical analysis of measuring the systemic risk. Chapter Five studies the bank failure related to bank systemic risk, and explores the propagation mechanism of the bank failures which transmits to systemic risks through the qualitative and quantitative analysis of the interrelationship among bank failures, give further measuring of this risk. Chapter six contributes to the precaution of the prevention of the bank systemic risk, and analyzes the bank safety net and the effective structure.