Research On Banking Industry Security Of China And Its Evaluation

In recent years, the financial crises have burst out in the whole world frequently, the harm to the contemporary economy is also growing, so that we have to find a new financial security mode worldwide. As an important part of China’s financial industry, banking directly affects the security situation of China’s financial development, and cause a great impact on economy in China. With the openness of China’s financial markets improving,the domestic banking sector is more susceptible to the effects of the international financial environment. China’s banking industry will usher in more challenges in the face of new opportunities. Therefore, it is very important to research and build security evaluation system of China’s banking, and to learn and understand the safety of the domestic banking industry and it is helpful to preserve our financial security and make the economic development more stable and rapid.In the research, the China’s banking industry is the research object, the research puts an eye on the industry security theory, combined with the development situation of China’s banking industrial safety, analyze the security influencing factors of the China’s banking industry in the background of economic globalization, gained a footing on the banking industry security evaluation research, in order to improve the industry security theory and to grasp the dynamics of banking security by index system in practice, and offer the basis of making right policies.Firstly, make the theoretical background of industrial security as the starting point, review the current status of industrial security, security of the banking industry of domestic and foreign scholars, to define the connotation of the banking security, expounded the theory of industrial security, the financial crisis and financial security, banking weakness Theory, all this has laid a theoretical foundation for the research on security evaluation of the banking industry in this article.Secondly, summarizes the operating conditions of the banking, and from the perspective of industrial security, analyze the current situation of China’s banking security, include the banking development environment and international competitiveness and industrial control. Based on this, analyze influencing factors of China’s banking security from four aspects in-depth, which are the domestic economic situation, financial liberalization, banking fragility and balance of payments situation. Based on the above analysis, building security evaluation index system of banking, using principal component analysis to evaluate China’s banking security, analyze the trend of the security situation in China’s banking and its reasons in2004-2013decade. And through regression analysis to test the empirical results, draw that the impact of banking fragility, domestic economic operation status and financial liberalization on the banking security situation is descending. Finally, the results of theoretical analysis and empirical analysis, the paper put forward specific policy recommendations suggestions to enhance the security of China’s banking industry.