Research on Influencing Factors of Systemic Financial Risk of Commercial Banks Against Major Emergencies

Haoyuan Che

doi:10.54097/hbem.v9i.9250

Authors

Haoyuan Che

DOI:

https://doi.org/10.54097/hbem.v9i.9250

Keywords:

COVID-19 Epidemic; Commercial Bank; Systemic Financial Risk; Principal Component Analysis.

Abstract

Based on the panel data of Chinese listed commercial banks from the first quarter of 2016 to the fourth quarter of 2022, this paper researches the key factors influencing the systemic financial risk of commercial banks before and after the outbreak of the COVID-19 epidemic via principal component analysis, and finally constructs comprehensive indicators of systemic financial risk of commercial banks before and after the epidemic respectively. It is found that the main factors influencing the systemic financial risk of commercial banks will be transformed when major emergencies occur. Besides, the ability of commercial banks in offsetting default risk is more important and the impact of profitability will also be enhanced. Finally, this paper puts forward relevant suggestions on how to better prevent commercial banks’ systemic financial risks.

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