A Research Of Recognition Of The Systemically Important Non-Bank Financial Institutions In China

The concept “systemically important financial institutions” has become widely circulated with the outbreak of the financial crisis.Before the outbreak of the financial crisis,it is generally believed that the systematic crisis has a relatively small impact on the financial institutions which have a large scale,a complex and adequate capital chain,and a strong correlation with the Internet.Even if the institutions are impacted by the crisis,the government will help them out in order to guarantee the financial stability.However,after the financial crisis of 2008,scholars come to realize that once the extreme risk event happens in this kind of institutions,other institutions will be infected with the risk or even the systematic risk will be caused in the whole financial system.Hence,the regulatory authorities start to strengthen the regulation and study on the systemically important financial institutions.The study on the systemically important financial institutions is mostly focused on the banking instead of non-banking financial institutions.However,some non-banking financial institutions like securities and insurance institutions is becoming increasingly prominent in the field of finance with the promotion of financial liberalization and innovation.This thesis employs the securities and insurance institutions as the study targets and recognizes the systemically important security institutions and the systemically important insurance institutions to put forward some suggestions on improving the government regulation.This thesis learns the recognition method from FSB,Basle Committee,IMF and many scholars.Combined with the development state of finance in our country,this thesis chooses the index method to measure the systemically important security and insurance institutions and set different measurement indexes according to the different institutions.According to the business condition of security companies,4 first class indicators are set,namely,scale,relevance,fungibility and complexity.According to the business feature of insurance companies,4 first class indicators are also set,namely,scale,relevance,non-traditional and non-core insurance business and fungibility.The paper choose 24 securities institutions and 9 insurance institutions as sample to study.The entropy method is used to determine the weights of indicators,then each index value of sample financial institution is obtained by weighted sum and sift thesystemically important security and insurance institutions in our country according to the values.The result shows that Citic Securities,Guotaijunan Securities are classified as the first gradient systemically important securities companies while China Life and Ping An of China are the first gradient systemically important insurance companies.The thesis analyzes the systemically important security institutions and the systemically important insurance institutions through empirical demonstration.The recognition of the institution is to do better supervision on the different institutions.Therefore,the development state of security industry and insurance industry,and their regulation and dilemma will be analyzed in this thesis.Combined with the regulation dilemma of the security and insurance industries in our country,the suggestions will be offered from the three perspectives: the crisis prevention from the macro level,the crisis prevention from micro level and after-event regulation.