Banking System Vulnerability Empirical Research In Our Country

The banking system is the main part of China’s financial system, whosevulnerability directly affects the stability of our financial system. Since the late1970s,112systemic banking crisis has erupted in93countries, and there are51potential crisisin46countries. Because of frequent banking crisis, my study of the vulnerability of thebanking system has great practical significance.My paper consists of five parts, the structure is as follows: section one is devoted tointroduce the background of my article, in section two to three I base on the theory offinancial fragility and draw on the research of scholars at home and abroad. I did China’sbanking system vulnerability analysis and elaboration using an empirical method, byselecting the latest Year2002-2011data. In section four, I quantify the banking system’svulnerability by factor analysis using SPSS software, which is recommended byinternational and domestic scholars, a more accurate measure. Finally in section five, onthe basis of analysis of the empirical results, I summarize the causes and put forwardrecommended policies and future directions for research.