The Identification On Systemic Importance Of China's Listed Commercial Banks

The 2007 subprime mortgage crisis that began in the United States not only hit the US financial system,but also suffered major losses in the real economy and financial markets of various countries in the world.The global crisis has highlighted the contagion of financial risks and the fragility of the financial system,which led to reflections from the international community on the regulatory philosophy that in the past was considered to ensure the stable development of a single financial institution to achieve a smooth operation of the entire financial system.Historically,there is an accumulation of systemic risks in the banking system in every financial crisis.All in all,There are many reasons for the accumulation of systemic risks in the banking industry to the crisis,including the close relationship between banks and banks and non-bank financial institutions.Once a bank is at risk,it will quickly spread through the infection channel to the financial institutions it contacts.For systemically important banks,the infection is faster and the domino effect is stronger.Therefore,such important financial institutions became the focus of macroprudential supervision after the crisis.In a word,the stable development of China's systemically important banks is of great significance to the reasonable growth of China's economy.Therefore,how to prevent the risk of systemically important banks is the top priority in the risk research of China's financial system.The premise of studying the risk of systemically important banks is to identify them so as to effectively supervise systemically important Banks.Therefore,this paper studies the identification of systemically important banks in China.Firstly,it starts from the background that macro-prudential supervision has been taken seriously after the subprime crisis,In the course of an overview of systemically important banks,this paper studies the current situation of systemic risk and its supervision in China's banking industry,thus lays the foundation for empirical analysis.In the empirical analysis section,the series of daily return rate and market value data of 16 listed Banks are selected as the research object,through the construction of CES method,thus,the systemically important banks in China are identified as Industrial and Commercial Bank of China,Agricultural Bank of China,China Construction Bank and Bank of China.On this basis,the recognition results of systemically important banks identified by CES mean were compared with those identified by MES mean and index method respectively,thus verify the rationality and validity of CES method used in this paper,Then it provides corresponding policy suggestions for the supervision department to conduct macro-prudential supervision.