The Assessment And Supervision Of Systemically Important Banks In China

After the outbreak of the international financial crisis, the collapse of major financial institutions is a key point of the crisis. These "too big to fail" financial institutions with large-scale network correlation, and complex business, involving the characteristics of a wide range of functions can not be replaced. Their failing will make the risk of a single body through various channels affect other agencies, and thereby cause a chain reaction. At the same time, it not only poses a serious impact on the global financial system, but also causes a significant impact on the real economy and the international competitive market.Relevant international organizations and national government and regulatory bodies in the thinking lessons of the financial crisis pointed that it was very necessary to further strengthen financial regulation, and proposed the concept of systemically important financial institutions. The serious deficiencies of systemically important financial institutions are in corporate governance and risk control, and it is the result of these key reasons for the crisis. For this reason, in the framework of the macroprudential policy, to avoid systemic risk to strengthen the recognition and supervision of systemically important financial institutions and solve the "too big to fail" have become an important part of the current financial regulatory system reform.In recent years, the Basel Committee on Banking Supervision and the Financial Stability Board and other international regulatory bodies have been committed to solve the problems of the "too big to fail" financial institutions. The Basel Committee on Banking Supervision not only proposed the assessment standards for the global systemically important banks and the policies and measures of systemically important financial institutions on November4,2011, and the the Bank of China is included in the first selected list of the world’s systemically important financial institutions. For Chinese banks, international and interconnect level only is in its infancy, so many of the larger banks are not the global importance of banks, but are the Chinese domestic systemically important banks. Along with the development of China’s economy and finance, there, in the future, will be more and more Chinese banks to enter the world’s systemically important banks.In order to strengthen awareness of the importance of domestic commercial banking system, based on the assessment standards of the Basel Committee on Banking Supervision on the banks of the importance of the global system and the CBRC to the commercial banks at the end of2011, this article makes a criteria for the classification on the domestic importance of banking system objective weighting method-Entropy Method, sort of domestic systemically important banks in assessing the16listed banks in China and put forward policy recommendations for the regulation of its existence, to further actively promote the systemically important financial institutions, regulatory and policy study.This article is divided into six chapters. Chapter1focuses on the study background and significance of ideas discussed from both theoretical and practical significance of this study. The one hand, to further supplement of the theory of the systemically important financial institutions, and assessment studies of the systemically important banks of China provide a theoretical basis for the regulatory practices of systemically important financial institutions in the future; the other hand, the study of the systemically important banks haves great significance to the maintenance of the healthy operation and development of domestic financial stability and the real economy. China’s banking is at the core position in the national economy, and their problems have a huge impact on the entire economy. Chinese banks have a big gap with each other. It is necessary to elect a number of banks which are very important in the system, and then give it a higher regulatory standard, and the assessment of systemically important banks in China is the first step to achieve this goal. This will not only be conducive to strengthening the emphasis on the banks of the importance of the domestic system and the improvement of the financial regulatory system, but also conducive to ensure stable and rapid socio-economic development.Chapter2, the existing literature were reviewed and summarized the current research in the field results and research methods. A lot of research of the authors in previous papers, are done, respectively from both foreign and domestic, according to the theme and content of the research reviewed, and the article forms an overview of related research in the field and does a evaluation of the study of the status quo at home and abroad in recent years.Chapter3reviews the exposure draft of the Basel Committee on Banking Supervision on the banks of the importance of the global system evaluation criteria and the China Banking Regulatory Commission on the criteria for the classification of the domestic systemically important banks. And it referring to Zhang Qiang and Wu Min (2011) builds a comprehensive evaluation index system of systemically important banks in China. And the article uses objective weighting method-entropy method to sort systemically important index of16listed commercial banks in China between2007-2010, using3%as the threshold value, and comes to the years the importance of the domestic system banks.Chapter4does an analysis of the main problems of the Chinese commercial banks in risk regulation, and finds that China’s commercial banking industry concentration is too high and there are weak awareness of risk management and a comprehensive risk management system is not perfect; compared with the Western developed countries, risk management physical differences; risk monitoring mechanism is not perfect, the execution is not strong; incomplete bank information disclosure, disclosure quality is not high; related laws and regulations of the financial regulatory system is not perfect. And further integration of the systemically important banks in China’s own characteristics and problems in the relevant policy recommendations. Chapter5is a summary analysis of the full text, further elaborated the significance of this study.Of course, there are many inadequacies due to the limited data and the poor availability of data in some indicators, and the comprehensive evaluation index system for systemically important banks in China is still not perfect. Meanwhile, the index threshold judgment of systemically important banks need to be clearly defined and is the focus of future research.