Study On The Impact Of Credit Derivatives Market On Banking Sectors Stability

With the continuous deepening of economic reform and the gradual increasing trend of economic globalization and financial integration, the credit risks faced to Chinese commercial banks will become more complex and more concentrated .But the level of credit risk management can not meet this situation. The introduction of credit derivatives will provide new chance for the development of Chinese finance and economy.As the rapid development and wide application of credit derivatives in these years, the discussion of the negative impact on banking sectors stability produced by credit derivatives has appeared. This thesis analyzes the impact of credit derivatives market on banking sectors stability from two aspects, including the positive impact and the negative impact. It also includes a VECM model with the data of American credit derivatives market and banking sectors to improve the negative impact. This study supplies the theory foreshadowing and policy recommendations of harmonization between credit derivatives market development and banking sectors stability, which Guarantees that credit derivatives can really promote the banking and financial systems of healthy development.The structure of this thesis is as followed: chapterⅠis the introduction of background, practical significance, research status, main framework and major innovation of this thesis; chapterⅡis the analysis of the impact of credit derivatives market on the banking sectors stability; chapterⅢis the empirical study with the data of American banks and credit derivatives market to improve the impact; chapterⅣsupplies policy recommendations after analyzing the necessity of introducing credit derivatives to China; chapterⅤdraws the conclusion.