1. Structural imbalances concentrate risks

Due to the lagging development of my country’s capital market and small and medium-sized financial institutions, state-owned banks have been in an absolute dominant position in capital allocation for a long time. On the one hand, apart from depositing money in banks, residents lack other effective investment channels. In addition, due to the cautious expectations brought about by reforms in education, medical care and social security, the marginal savings rate continues to increase and the resident savings rate remains high.

2. Amplification of financial and fiscal risks

During the process of gradual reform, a risk isolation mechanism between finance and finance has not been established. On the one hand, financial risks are transferred to finance. Due to the lack of institutional regulations, there is an obvious fiscal tendency in the central bank's use of funds, and it is difficult to recover huge re-loans. On the other hand, fiscal risks are transformed into financial risks.

3. The huge amount of informal finance has become a hidden danger

For many years, it has been very difficult for small and medium-sized enterprises to raise development funds from formal financial channels, and they have been forced to seek informal financial channels. The scale of China's informal finance is estimated to be close to 1/3 of formal finance.

IV. Prominent risks in mechanism transformation

Risks in the banking industry are concentrated, and asset quality is generally worrying. my country's banking industry lacks competition, weak corporate governance, poor business innovation capabilities, and widespread financial risks. Secondly, the securities industry implies huge financial risks. The income structure of securities companies is unreasonable, asset quality is not high, liquidity is obviously insufficient, and accumulated risks are serious. A number of securities companies are already in a serious insolvency situation.

5. Weakening of the effectiveness of capital controls

The serious weakening of the effectiveness of capital account controls has led to large-scale abnormal capital flows. First, there is the rent-seeking inflow of fake foreign capital. Since 2001, net capital inflows have grown rapidly.

6. Losses of the RMB exchange rate mechanism

The shortcomings of the RMB exchange rate mechanism have caused China’s traditional opening model and open policy to present an unsustainable development dilemma, and further caused many outstanding problems.

Extended information:

The basic characteristics of financial risks are as follows:

(1) Uncertainty: The factors affecting financial risks are difficult to fully grasp in advance .

(2) Relevance: The particularity of the commodity-currency operated by financial institutions determines that financial institutions are closely related to the economy and society.

(3) High leverage: Financial companies have high debt ratios and large financial leverage, resulting in large negative externalities. In addition, innovation in financial instruments and derivative financial instruments are also accompanied by high financial risks.

(4) Contagion: Financial institutions assume the functions of intermediaries and separate the corresponding relationship between original lending and borrowing. Risks on any party in this intermediary network may have an impact on other parties, and may even cause industry and regional financial risks, leading to a financial crisis.

Baidu Encyclopedia-Financial Risk