Research On Risk Infection And Immunity Strategy Of Banking&Securities Business Based On Complex Network

As a member of the World Trade Organization—WTO, our country has to followthe system of financial services trade liberalization, as a matter of fact, With thegradual opening up of financial markets, a large number of foreign financialinstitutions have entered China for the market of banks and securities industry, Inorder to take advantage in the fierce market competition, China’s financial industrymust follow the historical trend, adjust the traditional financial sector and acceleratethe process of cooperation between bank and Securities Industry.Although the cooperative banks and securities institutions can bring greatadvantages to both sides, there are also security risks exist: one side, China’s currentfinancial system is not sound regulation and financial institutions have lower levels ofinternal risk control; on the other side, investors have overly aggressive profit-seekingbehavior and the securities institutions’ risk asset have low quality. so there are someunstable factors exist in Banks and securities cooperation process Because thepresence of these risk factors, for example, Conflicts of interest﹑insider trading,allowances spill, what is more serious is that the Banks and securities institutions aretied together because of business contact, so when a financial institution generatefinancial crisis, financial institutions which have business contact with theorganization can be easily infected, so we must establish a sound financial risk controlmechanism to ensure the smooth conduct of banks and securities business. It has greatsignificance for ensuring the efficient operation of the financial system and improvefinancial asset utilization.This paper established a network model for the business relationship between banksand securities with the use of complex network theory to describe the characteristicsof the financial system and the overall measure from a macro point of view andproposed theories and methods of risk control and immunization of the financialsystem.Through the establishment of complex network model for banks and securitiesbusiness based on the actual situation and the use of mat lab software to simulationthe risk of infection dynamics process in the complex network model, this thesis mainly obtained the following results and conclusions:First, Find out the carrier as well as the risk of cross-point according to thebusiness contacts between commercial bank and securities markets.Second, this thesis argues that the meaning of the two-way selection weightedScale-Free financial network model is that: financial subjects are more inclined toselect companies with strong economic strength as their main financial partners.Third, we use Spread Dynamics model of infection Virology to analyze thefinancial system network and get the threshold value of the financial system, and thisprovides a theoretical basis in order to prevent the risk of transmission of the financialsystem effectively.Forth, with the use of Ucinet and Matlab to analyze the complex networks andproved that the model of complex financial network is reasonable and feasible.