The Study On Stability Of The Banking System In Our Country Under The Condition Of International Capital Flow

The globalization of the world's economy have stepped quickly,companied with the international capital flow moves even more frequently .On the effect of international capital flow on the financial system,there are many literatures .In this paper,our focus will be placed on the effect of international capital flow on the stability of banking system,which is the main part of our country's financial system .After Asia financial crises, many experts at home and abroad pay attention on this issue . In our paper, based on the existing literatures, we will stress the effect of international capital flow on the stability of bank system in our country, and present some measures and suggestion on the capital flow management and banking system stability under the background of the coming capital account conversion in our country.There five parts in this paper. The first part introduced the definition of the stability of banking system and correlated theories. In the second part, we analyze the effect of international capital flow on the stability of banking system.First we analyze the formation and trendency of development of international capital flow,then analyze the effect of international capital flow on the stability of banking system from capital inflows and capital account liberalization led to instability . In the third part,we first introduced the situation of international capital flow in china,then establish BSSI model to measure and analyze on the stability of banking system in our country. In the forth part, we analyze the effect factors on banking system in china. This part has been selected macroeconomic indicators, financial indicators, international capital flows indicators through empirical analysis on the Granger causality test, cointegration test,we found international capital flows on the stability of banking system had a negative affected. In the fifth part, we present some measures and suggestion on how to make our bank system more stable in the international capital flow background.This part analyze from the international capital flow management and banking system stability mainly.