Research On The Formation Mechanism And Measurement Of The Fragility Of China's Banking System

After China's entry into the WTO,with the deepening of market opening,the banking system also faced with serious challenges, to ensure its stable operation become the important work that keep China's economy healthy development. Although China's banking crisis has not occurred, the fact that the vulnerability of the banking system is often a key factor in the crisis. Therefore, understanding the degree of vulnerability of the banking system and its causes, to prevent and resolve the banking crisis and build a security system to prevent the crisis has important practical significance.Firstly, the relevant literature at home and abroad were reviewed, the concept of vulnerability was made a clear definition. Then the risk of banks in recent years were reviewed and organized, and status of the banking system were made a detailed exposition respectively from non-performing loans ratio, capital adequacy, liquidity and profitability of capital,and then analyse the situation and facts deeply from the macro environment and Banking system's endogenous mechanism.The core of the research is that constructed vulnerability indicators of the banking system based on the status of our country's banking systemandconducted a comprehensive measure for the vulnerability of the banking system in China. Select the micro-financial indicators and macroeconomic indicators between 1988-2009, through the measurement, find that the selected indicators and fragility of the banking system maintain the causal relationship between long-run equilibrium. Finally,according to theoretical analysis and empirical research,the reserch put forward corresponding advices from the external macro environment and the self-management...