Study On The Impacts Of European Sovereign Debt Crisis To European Banking

As the development of economic globalization and financial liberalization, every country in the world is faced with kinds of increasing threats of financial risk. Sovereign debt crisis is one of them, which is caused by heavy sovereign debt burden. Greek sovereign debt crisis, which is started in the end of2009, and the following European sovereign debt crisis have brought substantial impact on global financial markets, and aroused the attention of the entire world. European sovereign debt crisis threatens the stability of global financial system, and interferes with the process of global economic recovery. Currently, major developed economies generally face the challenges of fiscal deficit and debt burden, while population aging and labor market rigidities will further deteriorate the situations of its sovereign debt. A contradiction between the unified monetary policy and decentralized fiscal policy in the euro zone was firstly established, so these reasons lead to the European sovereign debt crisis. In October2011, with the collapse of Dexia, the European sovereign debt crisis gradually conduction from the national government level to the banking sector. The European banking crisis emerged. The lack of banking capital adequacy ratio and liquidity are the most serious problems. At the same time, the European sovereign debt crisis has influenced our country, so the study of this problem has important theoretical and practical significance.In this paper, I introduce the European sovereign debt crisis firstly, and use the method of text analysis, literature summary, comparative analysis and data analysis. I conclude the process of the development of the European sovereign debt crisis, and causes, effects and implications for China.This paper is divided into five chapters:the first chapter is an introduction to introduce the background and significance, literature review, research methods and innovation; the second chapter describes the theoretical definition of the European debt crisis, a brief debt theory of the crisis and the banking crisis and what is the European debt crisis; the third chapter summarizes the generation and the evolution of the European debt crisis and analyzes the causes and measures of the European debt crisis; the forth chapter focuses the influences of the banking sector, and analyzes the difficulties faced by European banks; in the fifth chapter there are some measures to copy with the European debt crisis.In this paper, the new point of view is first innovation. The analysis about the impact of the European debt crisis on the European banking sector is still relatively small, and most of the studies have focused on the European debt crisis itself. The second innovation is that this article gives a comprehensive analysis of the impact of the European debt crisis on the European banking sector.