Home> Archive> 2017> Volume 7 Number 2 (Feb. 2017)
IJSSH 2017 Vol.7(2): 115-121 ISSN: 2010-3646
doi: 10.18178/ijssh.2017.V7.805

An Empirical Study of Banking Fragility in China Based on VAR Model

Xu Lingjuan, Li Qian, and Wang Yanjun

Abstract—On account of its fragility, the banking system is more vulnerable to crisis, which if accumulated to a certain extent will become a financial or even economic crisis. Beginning with the empirical research concerning fragility, this paper analyzes to which extent the fragility of our banking system has reached as well as what and how this fragility has been led to.In addition, a VAR model is used to demonstrate the relationship between the fragility and its contributing factors, and finally deduce the seasonal tendency of the fragility of our banking system.

Index Terms—Banking system, fragility, VAR model.

The authors are with the College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing, Jiangsu, 210016, China (e-mail: linda_xu@nuaa.edu.cn, nuaalq@126.com, 578907314@qq.com).

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Cite: Xu Lingjuan, Li Qian, and Wang Yanjun, "An Empirical Study of Banking Fragility in China Based on VAR Model," International Journal of Social Science and Humanity vol. 7, no. 2, pp. 115-121, 2017.

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