| During the financial crisis, the collapse of large financial institutions hits theglobal financial system, forcing the government to take measures, which produces alot of economic and social costs, and more likely to induce financial institutions togenerate moral hazard. Learning the lessons, FSB, BCBS and other internationalorganizations developed a series of regulatory policies and risk disposal mechanismfor systemically important financial institutions under the claim of G20.International files for SIFIs can not be moved to China directly because of thedifferences of national conditions. It is still not perfect of our identification systemand regulatory regime for SIFIs currently.This paper, firstly, proposes framework for identifying SIFIs, combined withG-SIFIs international assessment methods proposed by FSB and BCBS and China’sactual financial conditions. Then this article establishes an evaluation system ofindicators based on classification to assess the importance of financial institutions,determines the weights using the entropy method, and calculates the systemicimportance score of sample institutions, which are filtered out by the asset aize.Finally, we obtain a list of domestic SIFIs with sequence of score.Empirical and analytical results show that large state-owned commercial banksare D-SIBs, but Bank of China, first G-SIFIs in China, has lower scores thanCommercial Bank of China and Agricultural Bank of China. In the nationaljoint-stock banks, with largest asset, China Merchants Bank’s scores less thanIndustrial Bank’s. Bank of Communications and Industrial Bank are the potentialsystemically important banks. CITIC Securities is China’s systemically importantsecurities. While Guotai Junan Securities and Haitong Securities Company are thepotential systemically important securities. With smaller assets, Hong YuanSecurities and Orient Securities have better ranking because of related indicators.China People’s Insurance Group, Ping An Insurance Group and China Life InsuranceGroup become systemically important insurance companies. Taikang Life and NCIare the potential systemically important insurance companies.Finally, the article presents a number of regulatory proposals to systemicallyimportant financial institutions based on empirical results, including the overallregulatory principles and specific regulatory measures. |
