A Study On Fragility Of Bank Industry

Bank is the core of financial system. The stable of bank industry is critical to the development of economy. Since the 1970s, however, bank crisis happened frequently. People have to face the fragility of bank industry. What is fragility? What cause the fragility? This paper makes a further discussion on this respect.In the author's opinion, the inherent defect in the operation of bank system is the internal reason. Some rules and regulation are imperfect, which is the external reason of fragility. In the long run, the structural change of financial institutions does have some effect on the fragility. The author also analyzes the fragility of the bank industry in China. In the end, he brings forward his suggestions on how to reduce the fragility.