Research On The Construction Of Banking Early-warning System For Financial Risks

After the reform of financial supervision system, one of the People Bank of China's functions changes from supervising banking institutions directly to covering and dissolving systematic financial risk. At present, each supervision authority has started to inquire into the construction of early-warning system for financial risk. This article focuses on how to set up early-warning system for financial risk as to make financial system stable.Early-warning of financial risk is to analyze and early warn of the possibility of financial assets losses' occurring and financial system's being destroyed in the process of financial running, and to offer policy and suggestions about financial safely running.This article consists of four sections:Section I . conspectus. This part introduces the essentials, approach and summation of early-warning system for financial risk.Section II. It is very urgent to set up early-warning system for financial risk in China.Section III. This part introduces how to establish early-warning system for financial risk in China.Section IV. Suggestions on how to establish early-warning system for financial risk in China.