The Study Of Evaluation Index System And Empirical Analysis On Regional Financial Stability

With the gradual loosening of financial regulation and continuous innovation of financial instruments, the global finance has become more and more integrated. The character and accumulating speed of financial risks have also experienced unprecedented changes, which have brought about frequent financial crises. These crises not only destroyed a country's economic achievement of many year's development and resulted in tremendous loss, but also enlarged the gap between the rich and the poor, enhanced the social contradiction and even triggered political and social crises. Every government and international financial instruction put more and more emphasis on the evaluation of financial risks and the construction of financial stability and exerted themselves to improve their ability of guarding against financial risks and crises. Since reform and opening-up, Chinese government has continuously enhanced and consummated macro financial control and regulation policies, ensured stable running of economy and finance and basically eliminated overall financial crises. Whereas local and regional financial instabilities still exists with the further deepening of our financial reform and opening to the outside world. When these risks accumulate to some extent and begin to change in essence, our country's financial stability will face great impact. Therefore, it is of great practical meaning for the safeguard of our country's financial stability and sustainable development of society and economy to build a regional financial stability evaluation index system suitable for our country's reality and use it to evaluate impersonally and accurately the risks and factors which affect regional financial stability, provide effective diagnosis basis for the decision-makers to recognize and control regional financial risks and improve the ability of guarding against and defusing regional financial risks.Using current overseas and domestic researches on financial stability and its evaluating methods for reference, the thesis builds a regional financial stability evaluation index system for Wenzhou city and makes an empirical analysis on it. This thesis consists of seven sections.Chapter 1 is about the introduction. In this part, the thesis illustrates the background and significance of this research in macroscopic and microscopic stances and then puts forth the research approaches, technological route and content frame of this paper. Chapter 2 gives an overview of literature, in which the author reviews current researches on the meaning, major evaluation methods and systems of financial stability. Chapter 3 points out the effects of financial stability, reviews the main financial crises since 1990s and makes a profound analysis on the influencing factors towards financial stability. Chapter 4 builds a regional financial stability evaluation index system for Wenzhou city on the basis of overseas and domestic experiences. In Chapter 5, the author calculates the weight of each index using analytical hierarchy process, collects relevant economic and financial data of Wenzhou city from 2001 to 2006 and makes an empirical analysis on the evaluation index system. Chapter 6 puts forward policy suggestions on building and perfecting regional financial stability evaluation index system. Chapter 7 gives the conclusion of the thesis, summarizes the deficiencies in the research and points out the direction of improving.