Research On The Control Of Regional Finance Risk

With the perfection and development of the market economy, the regional financialmarket grow rapidly in our countroy.With all sorts of elements interact mutually, theregional financial risks exposed continually.Financial risk is called “economic cancer”.Itwould bring lasting damage and catastrophic consequences if not to prevent andcontrol.Therefore, the control of regional financial risk caused the focus of the society.From the academic achievements at home and abroad, reach on the regional financialrisk control lack of systematic.This paper is to study the content of how to identificat andevaluate regional financial risk effectively, how to construct suitable regional financial riskindex system and measure model for China’s national conditions,and how to Coordinatesthe behavior.And then make the risk control strategy.This paper proposes a medium range of regional financial risks after defined therelated concept, and points out that this study refers the regional financial risk to the risk ofregional financial institutions.This paper combines the relevant theory of financial riskcontrol and regional financial risk control, and laids the theoretical basis of regionalfinancial risk control.The regional financial risk present an accumulate and strengthentrend after the reform and opening in China.This paper builds the measure index system ofthe regional financial risk based on the existing research, and take the city of Jinan asexample for the empirical test and trend analysis.The result shows that this index system is feasible and can effective measure of ourregional financial risk.So it has certain practical value.Based on the reality and empiricalstudy, this article make an in-depth analysis of the causes of regional financial risk fromfour main body, local financial institutions, local governments, regulators and theborrowers.This artical reveals the negative effects, puts forward the necessity of strengthenthe control of regional financial risk and the control strategy.Throughout the full text,in seeking truth from facts and rigorous scientificprinciples,this paper take the comprehensive study method of theory analysis and empiricalresearch, measurement analysis and inductive analysis to combine together. It provides thescientific and operational empirical model and reference solutions for the measurement and control of the regional financial risk, with the very important realistic meaning andreference value.