Research on the Impact of Cross-Border Capital Flows on Bank Risk

Abstract

With the enhancement of external uncertainty, cross-border capital flows have had a wide impact on China’s banking system, and the specific impact channels and preventive measures need to be studied in depth. Based on the economic data of the past ten years, this paper empirically examines the impact of cross-border capital flows on the risk of banks in China, and further explores how the risk is transmitted through the balance sheet channel, exchange rate channel and asset price channel, as well as the adjustment effect of asset-liability ratio, exchange rate and asset price.