Research On China's Banking Fragility

Financial system is the core of modern economy; the reasonable disposition of financial resources is the health development important attribute to market economy. The Chinese economy specific needs a healthy financial environment to deepened development reforming. The commercial bank system is the Chinese finance system's main constituent, acts the pivotal function in the national economy, but China's banking system accumulated serious risk is when carefully examines Chinese economy is unable to avoid. To seek the source or origin of risk is seeks the resolving road which must be taken. This paper is for the purpose of analyzing the characteristic, and main reason of China's banking fragility. Modern banking system grew in the western capitalism economy development, therefore this paper first makes an introduction and summarization to the modern western theory to the banking fragility, but China's economical development has its distinctive quality, both conforms to the western theory and to have its transitional distinctive quality, therefore we need to do pointed inspection to the Chinese situation.The full text altogether divides four chapters, we have first made a comprehensive definition in the first chapter to the banking fragility, after that we summarized the mechanism in the existing literature formed the banking fragility. After made the concept under the premise, we turned to the Chinese situation research. Has discussed the Bank of China system frail condition reality performance and the theory measure result in second chapter of first two, we discovered china's banking system regardless of from the representation or the measurement all demonstrated is in fragility which one should pays attention, but China hasn't erupted the comprehensive bank crisis, what is the reason of "Chinese story"? This is the third sector of second chapter. In transition government's control to the national finance resources is this phenomenon main reasonAfter we recognized the reality of china's fragility, we summarized the existing empirical research on the factor causing china's fragility. We found fragility's main origin was the institution is imperfect, what disobeyed with the theory, financial liberalization not excessively many caused the fragility, these two conclusions were the contents of two followed chapters In chapter 3 we specifically inspect why China's imperfect institution cause china's fragility, this including state economy dominant position and credit system flaw as well as commercial bank's government own and administrative intervention two aspects contents. In chapter 4 we analyze why financial liberalization have not marked influence on china's banking fragility this is not accord to international experience, receive the liberalized...