Influence On China's Banking Industry Of The New Financial Crisis And The Policy Recommendations To Cope With The Crisis

Since 1990's, the world is experiencing rapid development of the finance liberalization and economic globalization. However, the development is accompanied by the financial crisis like a ghost. Especially since complete credit currency system into practice, international transmission mechanism of the financial crisis is gradually complicated, the frequency of crisis accelerates, and coverage of the influence expands also day by day. In 1990's, the whole world significant bank crises increase to 63, the amplitude in excess of 60% compared with the 1980's.This financial crisis has made the international banking industry suffered a huge financial turbulence not likely to happen in a century. All the banking especially the developed country banking suffers heavy losses without exception. The ability of earning profit entirely comes down, asset situation worsens unceasingly, plentiful of capital condition is corroded, the liquidity and risk defense ability commonly lessens.Although China's banking industry has got marked progress through several tens years of development since China is founded and has had the strength to resist an international financial crisis, the invading of this financial crisis has still made big influence on the management and development of China's banking industry, because it still has many problems in the field of management system, asset quality, inspection system, business innovation, etc.Therefore, through studying the cause and transmission mechanism of the international financial crisis under economic globalization background, the enormous influence on the international and China's banking industry, and the comparison research of other countries and areas on the banks' measure to resist this crisis, we put forward some pertinent and feasible policy recommendations to resist the crisis and control the risk on the basis of drawing excellent experience from other countries. It has a big realistic meaning. I hope to increase the strength of China's banking industry by implementing these measures. Not only to resist the crisis passively, but also to control the risk actively, China's banking industry can avoid itself becoming the next crisis cradle.