Research On The Fragility Of China's Banking System

The stability of the banking system is the core of the financial sector stability, the fragility of the banking system is not only a threat to their survival and development banks, and is related to a country's financial development and security issue. Since the 80s of the 20th century, with the world's financial deregulation and financial liberalization process speeds up, increasing the vulnerability of the banking system, banking crisis, increasing the frequency and scale, resulting in national financial upheaval, caused the country's economy severe damage, the evolution of the U.S. financial crisis which was conducted by subprime mortgage crisis, making the fragility of the banking system more exposed, and therefore the study of the banking system vulnerability,analysis of the formation of the vulnerability of the banking system, and proposes the banking system to prevent and resolve vulnerability countermeasures, to improve the efficiency of the allocation of bank funds, and give full play the dynamic role of finance on the economy, ensure stability and sustained development of China's economy has far-reaching theoretical and positive practical significance.This paper is divided into four chapters. The first part is introduction, firstly introduces the background and significance of the paper, then introduces the theory of vulnerability and bank research status, finally introduces the research methods and ideas.The first chapter introduces the definition of the vulnerability of the banking system and the related definition of the concept, and from both endogenous and exogenous vulnerability of the banking system, the formation factors are analyzed, and then analyzed from the banking system vulnerability to the evolution of the banking crisis.In the second chapter from the capital adequacy ratio, non-performing loan ratio, profitability and liquidity described the four aspects of the vulnerability of our banking system and the reality of performance. Then from internal and external sector to analysis the vulnerability of the banking system in China.The third chapter describes the vulnerability of the banking system and methods of measurement of international experience, the use of macro-economic approach, selected 11 measurement indicators, and collect the 11 indicators from 1989 to 2008 data, on the vulnerability of the banking system in China measure as a whole and then on the state-owned commercial banks, shareholding commercial banks, city commercial banks the level of vulnerability of the three threshold method using an empirical comparison. The fourth chapter is based on the analysis of the previous proposed countermeasures to resolve the vulnerability of the banking system in China.