Research On Regional Financial Stability Assessment System

With the rapid development of economy, financial derivatives have been created, the capital operation throughout the world caused by the financial liberalization has led to the gradual exposure of financial risks. Financial stability refers that individuals in the financial system of a country can fully exert the function of resource allocation and deal with the external risks and impacts proactively. The development of finance brings more opportunities for local economy and at the same time, the possibility of regional financial risk is gradually increase. Only when the regional financial industry is stable, can the state's economy and finance operate healthily, if without effective supervision measures, it will impact the financial stability easily, and further influence the economic, political and social development level of a country. With the gradual growth of national strength, China's financial stability is closely related to the financial stability in Asia, and even the world. Therefore, how to maintain financial stability and guarantee the financial safety has already become the important research topic.By analzing existing researches, there are many researches about to establish the measurement of financial stable. As we all know, China has a vast land, the financial development level of different regions may be distinct. Consequently, the research on the regional financial stability is more suitable for the economic development rules in China. On the premise of the financial stability evaluation, the concept of regional financial stability is put forward, Bayesian Network is quoted for the modelling and analysis, and further analysis is carried out with Shandong province as an example. The regional financial stability evaluation system is compatible with China's national conditions, and it can also provide a theoretical basis for decision-makers, which is of great practical significance.