Industry Layout and Systemic Risk of Chinese Financial Institutions
In recent years,the successive financial storms have shaken European and American institutions.In this context,the industry layout and risk prevention of financial institutions have attracted high attention from regulatory authorities.This paper measures the industry layout of China's 38 listed commercial banks and 52 capital market service institutions,and adopts extreme value theory to decompose the institutions'systemic financial risk.Based on this,the impact of industry layout on systemic financial risk is empirically assessed.The findings reveal that when financial institutions implement differentiated,high-financial-exposure and high-real-estate-exposure layouts,they face more significant systemic financial risk.Meanwhile,financial institutions can achieve refined management through specialisation,thereby reducing financial risk.Based on the above conclusions,the paper makes suggestions on the industry layout of financial institutions in China,offering policy implications for financial risk prevention.
industry layout of financial institutionsdifferentiationspecialisationsectoral exposurerisk prevention