Reaserch Of The Systemic Risk Contagious Based On The Interbank Market

The international financial crisis in recent times have systemic features, a chain reactionby a single institution’s bankruptcy may cause the collapse of the entire financialmarket.Therefore,systemic risk research become a key issue in scholars. From the domesticsituation in China’s financial system, the banking system occupies an important position, andthe interbank market becomes more and more important. On the one hand,it meets thedemand for banks’ liquidity transfers,on the other hand,it also brings systemic risks, makingthe regulatory authorities and scholars becoming more and more concerned with thedevelopment of the interbanking market.Based on this, the paper would like to answer the following four questions: First, therelationship between systemic risk and interbank market; Second, the mechanisms of how theinterbank market effect to the systemic risk; Third, the possibility of the interbank market’sinfection to systemic risk. Fourth, how to prevent the risk of infection based on interbankmarkets. In this paper, we answer the four questions in lines.The conclusion is: Chinese interbank market now has some risk contagion effect, andmay bring systemic risk. This paper can provide a theoretical support to the regulatoryauthorities and banking institutions.