Research On Credit Risk Of China's Interbank Market

The entire market is divided into the financial markets, products and services markets and factor markets in macroeconomics. As an important place for financial intermediation, the financial market of financial intermediation is divided into short-term money markets and long-term capital markets for the financial intermediation. Under market economic conditions, capital supply and demand for funds is in a wide range and every financial institution for the demand of capital has difference in long and short time. So the development of financial markets is a strong and lasting impetus for the economic development. At the same time, because of its specificity in the financial markets, there are many risks. Once loss of control of the risk, it can lead to crisis in the financial sector, and it will undermine the security of economic growth. The core of the sub-market in money market is the interbank market. In the interbank money market, the price and the interbank lending rate is mainly agreed by the two sides. As the interest rate can be a good reflection of market supply and demand of funds, it is also important to adjust monetary policy of the country.The market is divided into the financial markets, products and services markets and factor markets in macroeconomics. Under the conditions of market economy, supply and demand of funds is very wide, so that finance is the lifeblood of the modern socio-economic to run. Once the supply is in imbalance, it will not only lead to a financial sector crisis, but also undermine the social and economic function properly.As an important place for financial intermediation, the financial market of financial intermediation is divided into short-term money markets and long-term capital markets for the financial intermediation. Under market economic conditions, capital supply and demand for funds is in a wide range and every financial institution for the demand of capital has difference in long and short time. So the development of financial markets is a strong and lasting impetus for the economic development. At the same time, because of its specificity in the financial markets, there are many risks. Once loss of control of the risk, it can lead to crisis in the financial sector, and it will undermine the security of economic growth. The core of the sub-market in money market is the interbank market. In the interbank money market, the price and the interbank lending rate is mainly agreed by the two sides. As the interest rate can be a good reflection of market supply and demand of funds, it is also important to adjust monetary policy of the country.Due to the needs of economic development in recent years, non-bank financial institutions and finance companies and so on were gradually allowed into the interbank market, and trading on the inevitable expansion of the main body will bring a growing number of financial risks. Interbank market is an important place for short-term financial intermediation between the banks in nature. In this context, the study of the credit risk issues of inter-bank market has a very strong theoretical and practical significance.Awareness of this issue of this thesis is that China's interbank market is now how to prevent risks. Around this issue awareness, there are four chapters in this thesis.The first chapter is Introduction. It briefly describes the research background, purpose and meaning of this paper. And the ideas and methods of this research, as well as the existing domestic and international credit risk on the interbank market and the related theoretical research results are briefly summarized, and it will advance the innovations and shortcomings in this paper.In the second chapter, it is mainly an overview of the basic theory of inter-bank market and the financial markets; there is the risk of introduction. It focuses on the functionality, features of inter-bank market, and the meaning and characteristics of credit risk in inter-bank market is also introduced. It also describes the development of China's interbank market and the formation and development course of developed countries and regions interbank markets.Chapter III focuses first on interbank lending market development situation and on the interbank market and the status of credit risk exists, then it analyzes the reasons for the existence of this credit risk. In this reason analysis of credit risk in the interbank market, it primarily is from the impact of the economic cycle, the credit environment given the economy during the transition period, interbank market, its not completed growth and the adverse selection problem to analyze the reasons for these four aspects.Chapter IV is mainly a corresponding reduction in proposed lending market credit risk initiatives from the reason of the existence above. In order to be in a better development of inter-bank market, combined with the previous analysis, it put forward three suggestions that is basis on the risk of the reasons. That is tangible and intangible combination of dismantling the market development and establishing a sound credit environment system and improving the lending market, the corresponding laws and regulations and so on.