| The stability of the banking system is the core of the stability of finance. The fragility of the banking system is an important subject not only threatening the existence and development of the banking itself, but also relating to the safety of a country's finance system. Since 1980's, the financial deregulation and financial liberalization have aggravated the fragility of the banking system; it leads the repeated breakout of the banking crises. China is in the course of transition from planned economy to market-oriented economy and there exist serious financial risks. Therefore, it is an urgent question to analyze the reason of the fragility of the banking system and find the effective measures to prevent the financial risks. It is also the reason why I am concerned. There has been a lot of literature about this subject abroad, but there has been few in our country.This thesis comprises four parts. The first part discusses the necessity and importance of studying the fragility of the banking system. It defines the concept of the fragility of the banking system and describes the causes and influences of the fragility of the banking system. The second part introduces the theories on the fragility of the banking system and the progress of these theories. The third part is the empirical analysis of the fragility of the banking system in China. According to the foreign experience and the specialty of our country, I choose 16 indexes about three parts to analyze the fragility of the banking system in China. From the result, I find the main factor affecting the fragility of the banking system is the macroeconomic behavior; the banking assets and the ability of defeating risks have less effect on the fragility of the banking system. This makes clear the treatment of financial crisis is no doubt a system engineering, which calls for cooperation among various departments and sectors with various policies and measures. The last part put forward some counter-measures to keep the stability of the banking after considering the result on analysis and special features of financial operation. |
