During The Transition Period, China's Financial Risks And Financial Risks Linked Research

The affluent fruit of the economic transitional period of our country is inalienable from the support of two major divisions of national economy, that is, treasury and state-owned commercial bank. In the gradual institutional vicissitude process, treasury and state-owned commercial bank bear the major institutional vicissitude cost. With the transition from"strong treasury vs. weak finance"to"weak treasury vs. strong finance", the cost allocation mechanism of institutional vicissitude has some changes, the reform cost assumption gradually shifts from treasury of the early stage to state-owned commercial bank of the later stage. This shift is nevertheless closely related to the considerable fiscal risk resulted from the weakening of fiscal (especially central fiscal) payment ability, unrelenting extension and expansion of its power and the consequential mismatch of revenue and expenditure, however, as state-owned commercial bank is the core of the financial system of our country and is a conduit of monetary policy dissemination. The graft of the cost accumulates tremendous financial risks in state-owned commercial bank, typically represented as inadequacy of capital sufficiency ratio, great amount of non-performing loans and descending of international competitiveness, etc.The financial characteristics of modern finance and the central status of state-owned commercial bank in national economy demonstrate that unless the tremendous financial risk of state-owned commercial bank can be controlled and alleviated, against the background of full opening of banking industry of our country and increasingly intensified banking competition, state-owned commercial bank of our country will not only be trapped in a disadvantageous situation, but also deteriorate in risk problem, thus it will bring shock to the whole political and economic stability, and will possibly nullify the achievements of the many years'...