Chinese Banking System Stability Assessment

a) Purpose and Motive of the Paper's Issue SelectionThe reform of banking sector is the very core of China's reform of economy and finance. In 1990s, as Latin America, Russia and Asian Financial Crises had occurred, more and more countries started to concern the safety of Financial System. Banking crises decide the depth and breadth of financial crises. Under the trend of financial globalization, whether have a stable and competitive banking system is important to China. To assessment stability of banking system have great significance for preventing and solving system financial risk, and also, keep stability and safety of China's financial system.The high incidence of financial instability and crisis, from the late 1990s to the present time, has spurred the development of analytical methods for the assessment of the robustness of the financial sector, its exposure to risk and its vulnerability to shocks. Quantitative tools include indicators of financial sector soundness, early warning systems, sensitivity analysis and extreme scenarios ("stress tests"), and financial forecasting. Many of these tools are used by central banks and other regulatory bodies, the Bank for International Settlements, the World Bank and the IMF.As we know, China has not joined Financial Sector Assessment Program initiated by IMF, but in 2003, Chinese Government has reformed the regulatory bodies, and newly established China Banking Regulatory Committee (CBRC), which focus on specific regulatory of banking system. In this way, as the central bank of China, People's Bank of China (PBC) put more emphasis on it functions on macroeconomic management, and also preventing and mitigating systemic financial risks to safeguard financial stability. But until now, there are still few empirical research...