The Distinguish Research On Chinese Systemically Important Banks Based On Fuzzy Analytic Hierarchy Process(FAHP)

In 2014, imbalance global economic, American and Briton economic situation is slightly better, the euro zone and Japan’s economic is malaise and Asia market development risk is getting higher. China is considered as emerging economies, traditional banks play a decisive role in the financial system, systemically important Banks are the main body of financial institutions. The regulator starts to recognize that systematically important banks are under insufficient supervision because of bankruptcy of “Lehman”, especially bank derivatives business risk is not fully control and lack of response to crisis situations for self rescue and disposal procedures, resulting the risk spread continuous and enlarging, which brings huge loss to the development of the real economy and the financial sector.In the new economic and regulatory environment, we must establish a set of supervision system to regulator systematically important banks according to China actual economic conditions. The paper analyzes SIBs from both foreign and domestic aspects, and then forms the initial definition of China SIBs. With the development of China’s banking industry actual situation, the paper select four first-level indicators as scale, correlation, irreplaceable and complexity. The second-level indicators will be explained in detail in the paper. The application of fuzzy calculation of the weight of various indicators of AHP, select the 16 listed banks annual data from 2010 to 2013 and sort the importance of system of China’s listed banks according to the calculation results. And set 0.1, 0.05, 0.02 critical value to divide China SIBs, the results show that the first level SIBs are four major state-owned commercial banks, the second level SIBs is the Bank of communications. The third level SIBs are Zhaoshan, Zhongxing, Guang Da, Ming Sheng, Xing Ye, Pu Dong. Other banks are belong to non-systemically important banks.Based on the above understanding, this Thesis provides 4 aspects of suggestions to perfect the Chinese SIBs supervision system: Establish stage-additional capital Complementary mechanism, Monitor China Systematically Important Bank business relevance and complexity, Complete Information Disclosure system of China Systematically Important Bank, Complete Crisis management program of China Systematically Important Bank.