The Study On The Pro-Cyclical Of The Banking System In China

2007U.S. subprime mortgage crisis began in the subprime bond market,thus evolved into the most serious since the Great Depression of the global financial crisis from1930s.The wave of financial crisis set off a wave much higher,the U.S. financial system crumbling,the world economy is facing enormous pressure,international attention is still hot,Also raised the specter of financial behavior as well as a comprehensive reflection of the financial regulatory system,pro-cyclical behavior of the financial system led to the financial crisis,leading to at least one of the main financial fragility.Financial system has obvious inherent pro-cyclical features.As China’s banking market to accelerate the process,the pro-cyclical commercial banks will gradually emerge,coupled with up-coming full implementation of the higher risk-sensitive Basel II,pro-cyclical effect will be strengthened.Commercial banks to the formation of the inner pro-cyclical,the capital of commercial banks and how to strengthen the regulatory pro-cyclical,And the existence of our pro-cyclical effects of the banking sector,About these issues for discussion and analysis of China’s banking market maintain the sustained and healthy development of the banking sector has important practical significance.In this paper, the framework of the international Basel II and the reform of the domestic banking market as the background,about the research is still in the initial study phase of the commercial banks pro-cyclical problem.In general, the pro-cyclical dynamics of commercial banks is determined by both internal and external factors,Internal factors are the bank’s credit behavior,external factors intensify regulatory capital requirements.Thus,the paper that the behavior of finance through internal and external dimensions of the regulatory level of capital to commercial banks in China discuss credit behavior and pro-cyclical regulatory capital.In the empirical part,through the use of EVIEWS model of Granger causality test and correlation characteristics,verify the pro-cyclical of China’s commercial banks.Finally,China’s commercial banks on how to slow down the pro-cyclical of the internal mechanism,the bank regulatory and other external factors, and other aspects of comprehensive concrete measures.Such as strengthen the regulatory authorities,the central bank,effective information exchange and policy coordination, while China’s commercial banks should actively build a comprehensive risk management framework,the initiative to mobilize against the cycles to encourage bankers to advance the process of China’s banking market,overcome and prevent pro-cyclical behavior of the negative impact of fluctuations effectively in the economic cycle.