Research on the Systemic Importance and Prudential Supervision of Listed Commercial Banks―Evidence from 16 Listed Commercial Banks in China

Abstract

The US subprime mortgage crisis in 2008 made people realize that important financial institutions play an important role in promoting the emergence, spread and diffusion of crises. With the huge changes in the business environment and forms of commercial banks, the factors that affect the vulnerability of financial institutions have become more complex and more harmful. This paper adopts an entropy method to assess systemically important financial institutions, and concludes that Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank have even greater importance, Joint-stock commercial banks ranked second, while urban commercial banks scored the lowest. Finally, it proposes corresponding macro-prudential policies for the supervision of systemic commercial banks to avoid the occurrence of systemic risks.