Proceedings of the 2016 International Conference on Modern Management, Education Technology, and Social Science (MMETSS 2016)

The Structural Imbalance of China 's Banking Currency Mismatch

Authors
Yuan Li
Corresponding Author
Yuan Li
Available Online February 2017.
DOI
https://doi.org/10.2991/mmetss-16.2017.76How to use a DOI?
Keywords
Commercial bank; currency mismatch; structural imbalance
Abstract
Since the reform of RMB exchange rate formation mechanism in 2005, the currency mismatch in the banking industry makes the change of exchange rate an important factor affecting the banking operation. This paper analyzes the currency mismatch of 16 listed banks in China, and points out that there are serious currency mismatches in China's banking industry, and there are obvious differences in the degree of currency mismatch in the banking industry. The main reason is that a series of historical reasons such as the single subject of China's foreign exchange market, the arbitrage behavior of commercial banks under the expected appreciation, and the initiative arbitrage behavior of commercial banks. It is suggested that both the regulatory authorities and the commercial banks should pay attention to the phenomenon of currency mismatch in the macro-prudential supervision, establish the currency mismatch risk early-warning mechanism and perfect the financial market to hedge the exchange rate risk.
Open Access
This is an open access article distributed under the CC BY-NC license.

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Cite this article

TY  - CONF
AU  - Yuan Li
PY  - 2017/02
DA  - 2017/02
TI  - The Structural Imbalance of China 's Banking Currency Mismatch
BT  - Proceedings of the 2016 International Conference on Modern Management, Education Technology, and Social Science (MMETSS 2016)
PB  - Atlantis Press
SN  - 2352-5398
UR  - https://doi.org/10.2991/mmetss-16.2017.76
DO  - https://doi.org/10.2991/mmetss-16.2017.76
ID  - Li2017/02
ER  -