| In China, the bank system is the core of the financial system, the stability of which is very important for the continuously development of the China's economy. With China's entry into WTO, the bank system will face more and more competition pressure, so, how to solve those problems that exist in the bank system is urgent at present. This paper intends to learn from a serious of papers about the bank fragility and analyze the bank system fragility in China.From many researches of the bank system fragility, a conclusion is draw that, the bank fragility is endogenous, while the exogenous factors can also add to the bank fragility. In addition to the common causes of the fragility, Chinese bank system has its own specific causes. The prominent one is that, the transformation of the economic system made the disequilibria development among banks, enterprises, and other economic units, which then cause the huge amount of the non-performing loan in the bank, the low quality of the bank's assets, the low ability of the bank's competition. Because of that, this paper pays more attention to the analyzing of the effects of the transformation; furthermore, discuss other factors like the effects of the law, the supervision and the economic development fluctuation. At last, this paper makes suggestions of how to solve the bank system fragility based on the above analyzing.This paper discusses China's bank system fragility theoretically and empirically with the existing study results in four parts. The first part is the instruction, in which are the related definitions of the bank fragility and the review of former researches at home and abroad. The second part's discussions are from the point of view of bank, enterprises and the Information Economics on the common condition. The third part investigates the China's bank system fragility. The last part of this paper makes three suggestions about how to eliminate China's bank system fragility. |
