The Research On Chinese Regional Financial Risks

As a special financial institution, the regional financial institution play an important role in Chinese region economic & social development, while its financial risks also influence the stabilization of Chinese financial fields greatly. In this paper, the author named regional financial institution's risk as the regional financial risk and treated it as the object of this research.In this paper, the author constructs a novel evaluating model based on the Fuzzy Logic Theory, the Principal Component Analysis and the Cluster Analysis methods etc.According to this, the risks of all Chinese regional financial institution, grouped by province, are firstly evaluated and ranked quantitively, which displayed the regional financial risks situation clearly.This paper combines the theory and methods of modern economics & finance to analyze the reasons of the regional financial risks, and attribute the risks mainly to the regional government's financial behavior, the regional government's short-sighted behavior, the deviation behavior of the goal function between regional governments' and the regional financial institutions', the lack of the supervise of the regional government, the interior supervise structural mistakes of the regional financial institution and the game behaviors between the regional government and the central government.The aim of the evaluation on the regional financial risks is to prevent and convert these risks. Thus, this paper applies the ANN Theory to construct a model for supervising the regional financial risks. Further, the risk clique values are brought up in order to keep away the regional financial risks.At last, based on the experience of the Guangdong Province and other countries, some reasonable suggestions are proposed, such as: to construct the bad-assets market, to strengthen the self-control ability, to complete the regional financial institutional supervisor structure, to construct the effective supervise systems, to set up the reserve for the loss, to set up the deposit insurance system and to set up the credit construct system etc.