Research On The Bank System Stability In Our Country Under International Capital Flow

On the effect of international capital flow on the financial system, there are many literatures. In this paper, our focus will be placed on the effect of international capital flow on the stability of bank system, which is the main part of one country's financial system. After Asia financial crises, many experts at home and abroad pay attention on this issue. In our paper, based on the existing literatures, we will stress the effect of international capital flow on the stability of bank system in our country, and present some measures and suggestion on the capital flow management and bank system stability under the background of the coming capital account conversion in our country.There five parts in this paper.The first part is the introduction. We first give out the academic value and practice significance of the research on their relations, and then distinguish some easily confusing concepts, the last one is the description of research method mentioned in this paper.The second part is the literatures summarization. First, we retrieve the research fruits at home and abroad, and then especially points out the limitations and drawbacks in our country which we will make up in this paper.In the third part, we analyze the relation between the international capital flow and bank stability in theory, which consist of two sections. One is about the effect of foreign capital inflow on bank system, another is the effect of unstable factors resulted from the capital account conversion.In the forth part, we analyze in details the capital flow and bank stability in our country. The capital flow analysis includes inflow and outflow two parts. As to bank stability in our country during recent years, 1991-2001, we first estimate it using the limitation value method, then we use the econometrics to find out the causes that affected the stability. Our conclusion is that the impact of capital regulation is clearly and obviously, and also testify that institution factors has a more important role on the bank stability in our country.In the fifth part, we present some measures and suggestion on how to make ourbank system more stable in the new background. First, we analyze the necessity to keep on the policy of capital regulation, and summarize the present regulation measures. Then, in the long run, that's to say, under the condition of capital account conversion, we give some suggestion to stabilize our bank system in two aspects, one of which is bank system itself, and another is management of capital flow.