Research On Regulation Of Systemically Important Banks In China

This paper establishes a frame to identify, regulate and build resolution regimes of Systemically Important Banks (SIBs) of China. Firstly, this paper identifies and makes order of Chinese SIBs by the index method and the CoVaR model dynamically, the results turn out that large commercial banks perform more importantly and should be recognized as SIBs, at the same time Joint-stock commercial bank should be identified carefully by both ways. This paper shows that the index method is easier to be operated by indicators, which can reflect operating conditions and related information of China’s listed bank. The model is based on the market information to reflect the spillover of a certain bank, so we must combine these two methods to identify SIFIs. Secondly, this paper compares capital regulatory measures and resolution regimes of SIBs between FSB and CBRC. Thirdly, this paper uses panel data to analyze the risk control ability and the impact of the credit channel of capital regulation measures empirically, the result shows that the capital regulatory measures can effectively reduce the systemic risk contribution of SIBs and will impose side-effect on the credit channel. Finally this paper arrives at the conclusions and some recommendations.