Research On China's Financial Fragility

The steadily running of financial system is a core of a country's financial development and security as well as a significant premise of a country's stable economic development. Currently, China's financial system has accumulated such heavy risks that we can't ignore when we carefully assess China's economy. To analyze the risks accumulated in the financial system is a necessary road to seek the ways out.The concept of Financial fragility dates back to Minsky's Financial Instability Hypothesis proposed in the year 1982, some other theories such as "Margins of Safety" and "dissymmetry information" focus their discussion on the bank behavior analysis. Financial fragility is the kind of financial state of risky accumulation due to the structural unbalance of financial system and the losing of partial or whole function of financial system. Financial system is the assemblage of a series of rules of social custom, morality and legislations about financial transaction, organization arrangement, supervision and innovation. It is composed of three subsystems, financial organization, financial market and financial supervision and is mainly embodied by its three subsystems. In recent years, the outbreaks of international financial crises are actually the outcome of the losing of the basic function of financial system.On basis of the present research on Chinese financial fragility, the thesis tries to find out a proper collections of core standards which can reflect the actual level of our country's financial fragility in order to scientifically predict the possible outbreak of financial crisis, and then puts forward a series of precautionary measures in order to avoid deterioration of financial fragility.The main structure of the thesis is as follows:The preface mainly introduces the formation and development of the conception of financial fragility, the international research on this topic at present and the perspectives from which the thesis analyzes.The first chapter exactly defines the connotation of financial fragility by analyzing the inner mechanism which contributes to financial fragility, puts forward two hypothesizes from the perception of banks and enterprises, give further explanation to financial fragility.The second chapter, on basis of theoretical analysis, analyzes the concrete situation of Chinese financial systems and its specific causes.The third chapter builds the framework of norm systems, quantitatively analyzes the degree of Chinese financial fragility. The last chapter brings forward some effective precautionary measures of avoiding the deterioration of Chinese financial fragility.