Study On Evolution Mechanism Of Systemic Financial Risk And Its Restraining

Since1990s, with the extensive financial liberalization all over the world, all sorts of financial crises burst out, which have caused a potent effect on the economies of some countries and even the whole world. In the thinking back to the crisis, endogenous systemic financial risk and its dynamic mechanism caused concern. The subprime crisis and the global financial crisis evolved from the former have been exposed to giant damage of systemic financial risk and the deficiencies of traditional financial supervision system to manage systemic financial risk. However, further efforts have to be made on the issues of defining systemic financial risk and its dynamic evolution mechanism and restraining currently. Therefore, this dissertation reviews and summarizes the main character and historical evolution of systemic financial risk in the first place, and attempts to give a better definition about its connotation and extension. And thus it clarifies the object of study. Secondly, it analyses the endogenous mechanism of the three steps of systemic financial risk, namely accumulation, triggering and transmission, from the aspects of financial system pro-cyclicality, the shock and system important financial institutions, financial network structure and credit crunch etc. Based on the above analysis, this dissertation integrates the above factors and mechanism, and analyses the complete evolution mechanism of systemic financial risk under the framework of asset price fluctuation. After that, the dissertation discusses the rule system and regulation tools of restraining systemic financial risk from the aspects of pre-warning, prevention and handling. It not only analyses the theory base of related rules and tools, but also some practical issues, for instance, design principles, research thread, main difficulties and resolve plans. Moreover, it proves the effectiveness combing practical experience.Last,the systemic risk of China’s financial system is discussed,including properties,institutional source,area and measure method. Then the general idea to restrain the Chinese systemic financial risk is proposed, followed by policy research.