The Impact Of Capital Constraints On The Transfer Of Systemic Risk

2008worldwide outbreak of the subprime crisis, making the world economy suffered an unprecedented disaster has still hovering in the process of economic recovery. Economic and financial stability and thus also got unprecedented attention, will become a top agenda of the Group of Twenty (G20) leaders summit (BIS,2009; G20,2009,2010; FSB,2009). However, as a potential systemic financial risks of the financial crisis, not just the entire financial system could bring similar domino effect, may also produce an overflow thus spread to the entire economy, becoming the world’s governments, international financial organizations and the most important academic attention when financial stability issues. As a result, the cost of supervision and management of individual financial institutions, the key to see if it will cause a non-positive outside the system, and therefore micro-prudential supervision and management measures are particularly important; secondly, many researchers to investigate the perceived financial regulation, the current bank regulatory significantly less systemic risk for the endogenous regulatory system, which further stressed the need to focus on the stability of the whole system, which is macro-prudential regulatory principles (Morris and Shin,2008; Acharya et al,2010;. Adrian and Brunnermeier,2011). Thus, it should be how to build an effective systemic risk can prevent the outbreak of prudential supervision and management system, which is the focus of the countries of the global financial system reform.In response, the international standards of banking supervision by the Basel Committee in September2010, issued in September to strengthen bank capital regulatory requirements of Basel Ⅲ:The first is to improve the requirements for the bank’s core capital adequacy ratio, while taking into account to mention a certain percentage of counter-cyclical capital buffer and countercyclical capital ready; followed by another for systemically important banks increased by1%subsidiary capital requirements. Domestically, the situation is that the People’s Bank of China’s central bank governor Zhou Xiaochuan on May16,2012at the37th International World IOSCO Annual Conference, said, determined to hold the bottom line does not occur systemic financial risks. December16,2012meeting of the Central Economic Work Conference stressed that we should attach more importance is now the fiscal area, the various risks implied by the economic and financial field, we must firmly hold the bottom line may be regional and systemic financial risks occur. Visible, systemic financial risk has now been highly concerned about the domestic policy-making departments. Practical experience, but also of the relevant regulatory authorities will soon follow the latest Capital Accord Basel Ⅲ, and from January1,2013began the formal implementation of the Chinese version of Basel Ⅲ.It is in this context, this paper on the impact of capital constraints as the main systemic risk transfer, do the research analyzed from the following aspects:As a basis for the entire study, the introductory part of the first study to clarify the reality of the background, and then clear the theoretical and practical significance of the study, and the study of ideas and ways of doing this study are described.This study was carried out standing on the shoulders of giants. The second part describes the theoretical basis of this study, it is the results of previous studies done on a comprehensive discussion. Including the study of the description of the regulatory capital of systemic financial risk issues such as the definition of the content of the introduction of Basel III, and summarize our research status of DSGE models and their applications on.This study is based on the regulatory status of our country’s banking capital. So the next inductive analysis focused on three aspects of the basic situation of our country. China’s commercial banks are from the capital regulatory regime change, the new Capital Accord real problem in our country as well as the implementation of China’s banking industry faces regulatory capital. Describes these three areas will help to recognize our basic form, a guide for the study of the role of the back.Research focus of the article is the impact on systemic risk transfer mechanism of capital constraints. This article includes the establishment of a family, corporate and banking sectors, including three New Keynesian dynamic stochastic general equilibrium model to analyze the impact of the macroeconomic impact of technological mechanisms, and focuses on the different capital adequacy requirements, the technical impact on the economy Effect of changes. Research shows that higher capital adequacy requirements, help the financial system (banks, etc.) to absorb the impact of the macroeconomic impact of technology, can effectively suppress fluctuations in the economy, the financial system and the economy, higher capital adequacy ratio plays a security Mat’s role, helping to prevent transmission of systemic risk.