The Rising Systemic Importance of Chinese Banks: Should the World Be Concerned?. (30th November 2017)

• Record Type: Journal Article
• Authors: Kemal Avkiran, Necmi; Mi, Lin
• Is Part Of: Australian economic review. Volume 50:Number 4(2017:Dec.)
• Page Start: 427
• Page End: 440
• Publication Date: 2017-11-30
• Subjects: Economics -- Periodicals; Australia -- Economic conditions -- Periodicals; Australia -- Economic policy -- Periodicals; Australia -- Economic conditions -- 1945-; Économie politique -- Périodiques; Australie -- Conditions économiques -- Périodiques; Australie -- Politique économique -- Périodiques; Australie -- Conditions économiques -- 1945- -- Périodiques; 330.994005
• DOI: 10.1111/1467-8462.12239
• Languages: English
• ISSNs: 0004-9018

Abstract

Abstract: International regulators use data on systemic importance for additional capital requirements for banks with cross‐jurisdictional operations. Chinese banks' importance scores have risen significantly and China stands as the world's largest net creditor. Furthermore, commercial banks in China have recorded higher non‐performing loans ratios across 2013–2015. Tracking systemic risk is a core activity in enabling macroprudential regulation. We focus on Chinese commercial banks and rank them as domestic systemically important banks (D‐SIBs). We then identify those high ranking D‐SIBs that are also global systemically important banks (G‐SIBs). We investigate whether high ranking D‐SIB/G‐SIB banks have adequate capital and their interconnectedness.