The Research Of Henan Regional Financial Risk Early Warning Mechanism’s Construction

Finance is the core of modern economy and society, not only an important endogenous variables of economic development, but also lead driver of economic growth. Efficient and stable financial operations of the modern economy can play an invaluable role in promoting, on the contrary, it will become the economic modernization process of obstacles. In recent years, with the spread of financial innovation efficiency and financial liberalization, financial risk issues have become increasingly prominent industry in Henan Province, the financial risk if not timely and effective guard against and defuse regional accumulation, the economy of the region and will financial security threat, often lead to severe financial crisis, the economic development of the region causing heavy losses.Currently, domestic scholars on regional financial security is often limited to regional banking and macroeconomic aspects, many research results have to analyze the risk prediction model instead of the entire area of regional banking financial sector, although banks in domestic financial markets dominated, both in scale and importance of the financial sector can not substitute for the other, but just consider the risk profile of the banking sector in the region and ignore the risk of other financial sectors is not enough to show off in full. Therefore, this paper summarizes the outstanding basic research and research scholars at home and abroad, combined with the characteristics of the regional financial and economic development in Henan Province, Henan Province, try to build a bear suit regional characteristics of banking, securities, insurance and macro-regional economic situation four sub-modules, including the risk of regional risk warning mechanism.Improve regional financial risk early warning mechanism constructed to reflect the needs of the various causes of the risk factors and changes in trends and specific targets, such as organic combination. Henan regional risk warning mechanism built in this article is a systematic project, the design process includes determining selected critical value indicators, early warning indicators to determine the interval, the index weight calculation process. Firstly, the excellent regional financial safety related literature reviewed, analyzed the theoretical basis for constructing regional financial risk early warning mechanism, outlining the basic principles of the build process needs to adhere to. Through the risks summarized financial industry in Henan Province, Henan Province, to identify the root causes of the financial impact of the risk lies. While this is based on the method of scientific theory, selected regional banks, regional securities industry, regional insurance industry and regional economic situation of the four sub-modules, in determining the risk threshold premise of individual indicators, the use of AHP individually determine individual risk sub-module weights and passed conformance testing. In the region as a whole collected Henan YN economic and financial data in2013after running through screening and calculations, more precise assessment of the financial risk profile of Henan YN area, which also proved Henan regional financial risk early warning constructed in this article mechanism not only has a certain theoretical significance also has considerable practical value.In recent years, the state of economic and financial development of the region’s growing importance in Henan, the skin has a core area of grain production in Henan Province, Central China Economic Zone, Zhengzhou Airport Economic comprehensive experimental zone three national strategic plan, which indicates that the economic and financial Henan development has been standing at a new historical starting point, the need to accelerate the development of strategic thinking, and effectively improve the institutional mechanisms and basic conditions, during this critical period of the rise of Central China poised to strengthen financial risk control mechanisms Henan region, enhance financial radiation force, the will complete the construction of the Central Plains economic Zone to accelerate the revitalization of the historic burden of Henan to provide strong support.