Research Of Transmission Mechanism Of Financial Stress Of China Commercial Banks

Commercial banks plays an significant role in financial system. The goals of commercial banks are profitability, liquidity and security, studying of the financial pressures of commercial banks provide a security guard,which can help to get the goals of business.The current conduction mechanism of pressure on commercial banks has not been studied in depth, after investigation, financial stress of commercial banks in China of 2008-2009 and 2011 is larger than ever,this may because it was affected by financial crisis and European debt crisis.Therefore, this article studied financial pressures of commercial banks in a conceptual model with dynamic multi-levels to improve that the transmission mechanism is reasonable.This paper studied financial stress conditions of commercial banks in China, theories of transmission mechanism of financial stress have been organized,it was subdivided into internal transmission mechanism and external transmission mechanism,and the external transmission mechanism was subdivided into direct conduction?indirect and cross-conduction. the paper selected indicators of commercial banks, stock market, insurance market,bond market, foreign exchange market, financial stress index, builded GARCH, TARCH and GARCH-M models to study the specific impact of early pressure fluctuations on the current index value fluctuations,used ox 3.4 software to built MS-VAR models and do impulse response analyses on platform of Givewin, which is used for studying how the others reacted when each indicators changed,and how the reaction strength and durability of each index are When pressure switched between different pressure conditions.Empirical tests of the commercial banks had proved the reasonableness of financial pressures transmission, revealed that much of pressure conduction was significant.