Research On The Openness Of China's Financial Industry And Bank Risk Taking

In recent years,China's financial industry has continued to open up to the outside world,and has implemented a series of opening-up measures,including abolishing the shareholding of foreign-funded financial institutions in Chinese banks and expanding the business scope of financial institutions.However,as the opening of the financial industry continues to deepen and the competition of domestic banks intensifies,this may have an impact on the bank's risk-taking and further affect the stability of the financial industry.At the same time,there is relatively little research on the opening of the financial industry and bank risk taking in academia,so there is an urgent need for theoretical and empirical research on the opening of the financial industry and bank risk taking.Based on this,this article focuses on the research on the opening of the financial industry and bank risk taking,which not only provides a theoretical reference for the relevant research on the opening of the financial industry and bank risk taking in China,but also provides some experience for the research on how to solve the risk problem of Chinese banks For reference.First,on the basis of a large number of relevant literature at home and abroad,this article clearly defines the concepts of financial industry opening and bank risk taking,and thus introduces the measurement methods of financial industry opening and bank risk taking,followed by bank risk The influencing factors undertaken have been theoretically studied.Then,based on the economic analysis of the relationship between the opening of the financial industry and bank risk-taking,an empirical analysis of the relationship between the opening of the financial industry and the risk-taking of China's banks was carried out using regression models.The risk-taking of banks is positive.Secondly,using the cross-term method to conduct an empirical study on the transmission mechanism of the opening of the financial industry to the bank's risk-taking,the results show that when the opening of the financial industry expands,the proportion of domestic and foreign banks increases,further exacerbating the bank's loan market In order to compete for customers,banks often lower the interest rate of loans.The decline in loan interest rates will reduce the profit of the bank.At this time,the bank adopts a high-risk strategy to keep the profit unchanged,which increases the risk of the bank.Finally,this article puts forward policy recommendations such as advancing the opening of the financial industry and establishing an early warning system for loan interest rates.