A Study On The Systematic Risk Of China’s Commercial Bank After The Financial Crisis

With the bankruptcy of Lehman Brothers in2008, the U.S. financial crisis fully broke out. The risk brought serious negative impact on the global financial and economic. That gives people a living case to understand the systemic risk. With its extremely contagion and huge destruction, the systematic risk has caused great concern of the government departments and academia,and to strengthen the supervision of systematic risk has also become a top priority of the national financial regulatory reform after the financial crisis. During the financial crisis, China’s banking industry hasn’t been seriously affected, but that doesn’t mean how perfect China’s banking system is. Although since the restructuring and listing, capital adequacy and non-performing loans of banks have improved significantly and the risk of resistance have also increased, compared with foreign banks, there are a lot of deficiencies on the property rights, corporate governance, internal control and risk prevention of China’s banking system. With the gradual opening up of China’s banking sector, China’s banking sector will be integrated into the volatility of the world’s banking system. In that case,the foreign banking crisis will bring greater impact on the China Banking; Therefore, to study China’s commercial bank systematic risk is of great significance for the maintenance of financial stability。The article begins with the concept of commercial bank systematic risk, then elaborates the main features and the formation theory of the commercial bank systematic risk. And then from the three aspects of profitability,safety and mobility, the passage makes an overall analysis of the operating status of China’s commercial banks after the financial crisis, followed by four possible sources of China’s commercial bank systematic risk. Then using a single exponential model, the passage operates an empirical analysis on14sample banks’ systemic risk in the2008-2012period,. The results show that the systemic risk of commercial banks in China are mainly from outside the industry; the problem of "small banks,big risk" is prominent; relative to other industries, China’s banking systematic risk is higher. Finally, the passage puts forward four-point policy recommendations to prevent bank systemic risk.