Research On Identification Of Systemically Important Financial Institutions In China

In the financial system,a single financial institution can adjust its asset structure by increasing the scale of off-balance sheet business,improving the leverage rate or expanding the scale of assets,and form a state where the single financial institution has no risk of bankruptcy.However,because the off-balance sheet business and the risk transfer have significant negative externalities,these financial activities only achieve the risk of transfer and redistribution,the risk does not really disappear,the systemic risk which formed by these financial activities will be gathered in the financial system,the systemic risk will cause the collapse of the entire financial system when it is gathered to a certain extent.Therefore,it is the primary task for macro prudence that assessing the systemically important financial institutions and implementing capital attached to these institutions.Systemically important financial institutions include three branches: systemically important banks,systemically important insurance agencies and Non-bank Non-insurers systemically important agencies.Among them,the systemically important bank is the priority for all,and the relevant research is also very abundant.Meanwhile the systemically important insurance agencies in the study of the literature also has a reference.But the research on Non-bank Non-insurers systemically important agencies is very scarce.This is because,in the past many studies on the systemically important financial institutions in our country suggest that non-bank non-bank financial institutions such as finance companies,securities companies and investment funds are small in scale and have a narrow range of business implications.With the development of Internet finance,the impact of non-bank non-insurance systemically important financial institutions on China’s financial system has gradually emerged,so the relevant research should also keep up with the pace.This paper uses the index method to evaluate the three branches of the systemically important financial institutions.Under the same standard,the ranking of each branch financial institutions is obtained,and the systemically important institutions in different industries is identified.The assessment’s results of different types will be explained,and relevant policy recommendations will be put forward.This paper consists of five chapters which is divided into three levels.The first level is to raise the question,including the first chapter--Introduction and the second chapter--Relevant Theories and Review of The Literature;the second level is the analysis of the problem,including the third chapter--Constructing the Index System to Assess the Systemically Important Institutions and the fourth chapter--Analyzing the Assessment’s Results;the last level is to put forward relevant policy recommendations basing on the conclusions,including the fifth chapter--Conclusions and Outlook.The article mainly solves three problems: the first is to explain the reason that the first bank of our country selected to the G-SIBs is different with the assessment’s result;the second is that this thesis will assess the three branches of D-SIFIs with one method.The third is how NBNI SIFI will be recognized without the weight of relevant indicators,then use the entropy method to identify the systemically securities companies.