The Construction Of The Regional Financial Risk Measurement System And Empirical Research

Finance and economy are mutually reinforcing,and good economic operations are inseparable from financial security.Regional financial security is the precondition of regional economic stability.The accumulation of regional financial risk to a certain extent will lead to financial crisis and endanger social stability.Therefore,China pays great importance to the prevention of regional financial risk.Constructing a regional financial risk measurement system is the key step for quantifying regional financial risks.It is of great significance for further prevention of regional financial risk and maintaining regional economic stability.The paper starts with discussing the relevant theories of regional financial risk,and constructing a regional financial risk measurement system covering 18 economic indicators and regional financial indicators.Then the paper makes the quantitative analysis of regional financial risk in six provinces and one city in east China from 2010 to 2017.In the research process,the scientific method is used to set the threshold value of the indicators,and the paper adopts the Analytic Hierarchy Process and the Entropy Method respectively to calculate the subjective and objective weight of each indicator,realizing the calculation of the comprehensive weight.The study finds that all regions in east China are basically in the financial stability range and the financial security level of all regions has an upward trend.Among them,the comprehensive scores of Shanghai and Jiangxi provinces are slightly lower,indicating that regional financial security is relatively low.The main reasons for the differences in regional financial risk are the differences in the intensity of bank supervision,the performance of security industry and the degree of dependence on foreign trade.The indicators causing regional financial risk differences mainly include the regional consumer price inflation rate,the growth rate of loss of regional deficit companies,the growth rate of net profit of regional security industry,the regional foreign trade dependence and so on.Finally,according to the study results,the paper comes up with some regional financial risk prevention measures,like constructing the constant regional financial risk measurement system,giving full play to the economic regulation functions of the local government,improving the regional financial ecological environment.