Research On The Institutional Mechanism Of Maintaining Financials Stability Under The Background Of Two-way Financial Opening

Since the wave of financial liberalization in 1970s,countries have opened the financial market to varying degrees,and have carried out the financial reform of interest rate liberalization,exchange rate liberalization and capital account liberalization,and believe in the economic growth effect of financial openness.However,the Southeast Asia financial crisis in 1997,the global financial crisis in 2008 and the European debt crisis erupted in 2009,all of which prove that financial openness can also bring crises,which will bring a heavy blow to a country's economic and financial sectors.Therefore,this paper studies how to maintain a country's financial stability under the background of two-way financial openness,and make the two-way opening of finance promote the economic and financial development of a country,while maintaining a country's financial stability.First,based on the data of 38 countries and regions in the past 1997-2016 years,we use factor analysis to construct financial stability comprehensive index,so as to explore the degree of financial stability in different countries.On this basis,multiple panel data are used to study the effect of financial two-way opening on financial stability.The research results show that the actual interest rate increase impact on financial stability is significantly negative,the marketization of interest rate increase will improve the degree of financial stability;exchange rate index to affect financial stability is significantly positive,the exchange rate marketization level(lower capital transaction control degree)can also increase the financial stability;The total amount of trade has a positive effect on the financial stability,that is,the increase of trade openness is beneficial to the improvement of the financial stability of a country.The net investment of securities accounts has a significant negative impact on financial stability,indicating that opening of capital account will reduce the financial stability of a country,so we should be cautious about opening capital account.Secondly,this paper analyzes the process of Chinese financial two-way open,and test the financial stability index,the results show that during the crisis,the financial stability index appeared significant change,so that construction of financial stability index is effective.Then it analyzes the factors that affect China's financial stability under background of financial two-way opening.This paper analyzes the factors that affect China's financial stability under background of financial two-way opening from the following eight dimensions:financial market competition,financial system transformation,financial regulation,government debt problem,high leverage ratio,Internet financial risk,large-scale international capital flows and international trade.Finally,this paper from the perfection of the financial laws and regulations,gradually expand opening degree and improve the competitiveness of the financial industry,the domestic financial institutions macro-control and micro prudential supervision combined,strengthen international coordination and enhance cooperation in six aspects of China's professional investors put forward countermeasures and suggestions to maintain China's financial stability.