The Research On China's Financial Risk Prevention Mechanism

Financial risks of the financial market and financial activities of the inherent attributes of the financial and economic activities with biological inevitable. Along with economic globalization and market integration of the rapid development of countries in the world financial business, Monetary policy mutual exchanges and coordination and mutual penetration and expansion, competition and constraints has been developed to a certain level, Financial globalization is a trend of gradual deepening. In December 2006, China's financial industry in accordance with the entry of WTO commitments, fully open to foreign investment. The financial industry is facing with the developed countries and transnational financial institutions all-round competition is in a crucial transition phase. However, due to various reasons and institutional endemic to China's national conditions, China's financial industry is not entirely complete market-oriented reforms; still accumulate a lot of potential financial risks. Faced with a complex and changing domestic and international economic environment, prevention of financial risk should be taken seriously enough. Therefore, China's financial risks in-depth and detailed analysis of the financial risks accumulated knowledge of the causes and nature, and the establishment of sound financial risk prevention mechanisms, avoid financial risks accumulated suddenly released to cause huge losses for the national economy and accelerate the pace of financial reform. China's financial industry and the healthy development of the national economy, effective preventing and gradually reducing financial risks so as to safeguard national economic security is of great theoretical and practical significance. From our financial status and the risk of the trend of the evolution of the meaning of financial risks, Features and theoretical sources do an in-depth analysis on China's major financial risk prevention mechanisms Construction of the discussions, According to financial engineering system control theory, the financial risk prevention mechanism should be in accordance with prior warning and in the middle of control. After the establishment of three levels of insurance, including specific financial risks as an early warning mechanism to control mechanism and the insurance mechanism 3 together, it is a systematic project.