Research On The Impact Of Financial Opening On Financial Stability Under Macro-Prudential Policy Regulation

With the accelerating process of financial globalization,China’s financial openness has ushered in new opportunities for international development.However,while the financial opening has introduced advanced technology and management experience from foreign developed countries to promote the rapid development of China’s financial system,it also harbors huge risks,which may cause serious impact on China’s financial stability.The outbreak of the subprime mortgage crisis in the United States in 2008 was a phenomenon of financial instability caused by financial openness,and this financial crisis also made domestic and foreign scholars and regulatory authorities gradually realize that the existing micro-prudential management is unable to maintain the stability of the financial system,and macro-prudential management began to receive attention.Macroprudential management is to maintain the stability of the whole financial system from the whole financial system with the aim of preventing financial crisis.Therefore,in the increasingly complex domestic and international economic situation,studying the impact of financial openness under macroeconomic prudential policy regulation on financial stability and considering how to maintain financial stability through the use of macroeconomic prudential policy tools has important theoretical and practical significance.Firstly,by reviewing and sorting out the research results in related fields,this paper summarizes the current status of research on the impact relationship between financial liberalization,macro-prudential policy and financial stability,and sorts out the basic theories related to them.Secondly,the development process and current situation of financial openness,macro-prudential policy and financial stability are analyzed.Construct a financial stability index system,collect quarterly data from 2004 to 2020,and use principal component analysis to synthesize a financial stability index to measure financial stability.Thirdly,from the theoretical and empirical perspectives,the impact of financial opening on financial stability and the regulatory mechanism and effect of macroprudential policy tools on financial opening on financial stability are analyzed.The VAR model of financial openness and financial stability index is constructed,analyzed by impulse response function,and three different macroprudential policy tool variables and their collocation are added sequentially based on the model,and the regulatory effect of different macroprudential policy tools on financial opening on financial stability is further explored.The results show that financial opening will aggravate the instability of the financial market,and various macroprudential policy tools can regulate the adverse effects of financial opening on financial stability to a certain extent,but the effects are different and there are countervailing effects.Finally,with reference to theoretical and empirical analysis,it is proposed to prudently promote the process of financial opening-up,improve the macro-prudential management framework in the process of financial openness,establish a sound financial stability index system,and provide countermeasures and suggestions on how to use macro prudential policy tools to maintain financial stability in the process of financial opening up in China.