Researh On Fragility Of Chinese Bank System In China

For the countries around the world, the core of the financial sector stability is partly accociated with the stability of the banking system. The stability of a national banking system is related only to the growth and development of the bank itself, but also related to a country’s financial safety. the process of financial liberalization is also accelerated, which has further exacerbated the vulnerability of the banking system, leading to the outbreak of international banking crises with upward trend scale, which triggered the financial turmoil caused a serious impact and damage of the economy. Therefore, the vulnerability of the banking system for the national financial security are very important, which attracts many scholars to have a intensive studiy of the fragility of the banking system. At present, concerned with China’s economic reform, its has entered the crucial a stage. In this period, many deep-seated contradictions of the economic and financial activities emerged gradually, which makes an increasing risk of our banking system which cannot be ignored. Thus, in such a situation, the urgent matter is to analyse the causes of the vulnerability of the banking system in depth, to find out a method of taking precautions against and defusing financial risks in order to guarantee the stable operation of the our banking system.This paper consists of five parts. In the introduction, the background and significance of this topic, the overseas and domestic study of the banking fragility and the research content and innovation of this paper are stated. In the second parts, the definitions of banking system fragility and relative concepts are given and the theoretical analysis of the banking fragility is introduced in detail, and the new progress in banking system fragility study is summarized briefly through the elaboration of the literature in bankind system fragility. The third part introduces the inherent and the external causes of the banking system fragility, then explains the particularity of our banking system fragility. The fourth part focuses on the empirical analysis of banking system fragility, analyses the fragility of our banking system from1986to2010adopting factor analysis method after explaining the measuring method of banking system fragility in detail. The last part is about the advices and methods to solve the problem of banking system fragility through the conclusion drawn from the empirical analysis.