Measurement Research on Risk Spillover Effects of China’s Listed Commercial Bank

Abstract

The development of China’s financial market and introduction of financial products in developed countries could spur China’s economic take-off and bring many unknown potential risks. American sub-prime crisis could set off the alarm bell and was regarded as an example for improvement of financial regulatory mechanism. Because Banks lend massive loans unconditionally to stimulate consumption it was very burdensome for the majority of people to bear loans so that banks could not get in huge amount of cashes in time, disrupting capital chain and stirring up systemic risks of banks and financial institutions and banks successively. The economic bubble of mortgage loan market would fall on financial market and the surplus can impact the real economy so as to result in real economic depression. This article relies on the bank’s risk spillover effects research to have the grasp of what banks will have such influences in China’s commercial banks and to put forward some schemes to lower the effects of risk spillover.