The Research Of The Financial Ecology Construction Based On The Prevention Of Regional Systemic Financial Risks

Regional systemic financial risk is extremely destructive and influential, it willnot only affect the stability of the local financial system, but also will have a hugenegative impact on the entire financial system when regional systemic financial riskbroke out. The prevention of regional systemic financial risk will be primary part offinancial regulation in the next period. It also has been stressed by CBRC and thePeople’s Bank of China repeatly. On the other hand, the development of constructionof ecological has influence deeply in the financial system. Financial theory andmethods of ecological allows us to examine the pattern of the operation of thefinancial system entirely. It is also a best way to understand the financial system andthe distribution of risk and prevention. Financial ecological theory can also be used asan important regional financial risk prevention measures. The author started toresearch for the thesis under this circumstances.Based on the financial ecological perspective, the paper analyzed the mechanis mof the regional systemic financial risk on the financial ecological subject, thefinancial environment and the financial ecological mechanis ms respectively. Drawingon the foundation of predecessor’s research achievement, the paper designed a newindex system assessing the regional systemic financial risk, which included fourprojects layer,11sub-projects layer and40original indicators. The index system wasused to evaluate the regional systemic financial risk condition in Hunan Province inthe year of2008-2012. Based on the assessment result, the paper researched thespatial distribution and spillover effect of regional systemic financial risk. Finally thepaper put forward some new ideas of local financial ecological constructionaccording to the evaluation and analysis results.The main conclusions and results of this paper are as follows: The cumulativeeffect of regional systemic financial risk can ultimately be seen as a result of theregional financial ecosystem imbalance when we research it from the financialecological perspective. This kind of imbalance may be some kind inappropriatebehavior of financial ecological subject, or maybe undesirable changes in financialecosystem environment, or the lack of regulatory mechanisms. The assessment ofregional systemic financial risks can separate to three parts, that is macroeconomicrisks, financial risks and regional financial soft environmental risk, and the regionalfinancial soft environmental risk can be divided into administrative and judicial environmental risk, credit risk environment. Regional systemic financial riskassessment index system can be established on this way. Regional systemic financialrisk assessment index system showed a good stability and applicability in assessingthe14cities and87counties risk status in Hunan. The spatial distribution of regionalsystemic financial risk was relevant, namely the regional systemic financial riskdistribution cluster in some areas. To do the work of preventing regional systemicfinancial risks more effectively, new thoughts should be drawn into the constructionof local financial ecological.