The contagion analysis effect of systemic risk in China listing Banks under the infection matrix norm theory

Abstract

The effective measure of bank systemic risk to financial market stability plays an important role. Minimum difference entropy analysis and stress testing method changed in this article uses both scholars and build systemic risk of infection matrix norm theory by combining innovative matrix theory norm with rows and columns norm to do precisely this issue metrics. And listed on the Shanghai Stock Exchange has all the assets related to equity holders and changes in the inter-bank and systemic risk situation empirical analysis for the study. The results show that the systematic risk of the size and influence of the banks in the industry with a difference, so the establishment of “bankruptcy as the core” of financial institutions exit mechanism, in essence, is to get rid of “financial security at the end, “ the habit of thinking, while effectively reduce and prevent systemic risks in the financial operation of the capital markets and deepen the reform of the banking system to create better conditions.

Keywords:

• Banking system
• Systemic risk
• Norm
• Contagion effect
• Equity holders