Liu Hao & Cao Dongpo: Jiangsu Financial Systemic Risk Assessment, Early Warning and Prevention Strategy Research

Release time:2016-08-20Author: Liu Hao & Cao Dongpo

 On the whole, the financial systemic risk of Jiangsu Province is still in a controllable range, but the structural problem is prominent, with the systematic financial risk characterized by debt chain making it high-pressure to prevent and resolve. Therefore, the government should constrcut a three-dimensional and all-round early warning system as a whole, create a debt and asset financial index system including government, enterprises, financial institutions and households, and do a good job in daily monitoring and regular reporting. In terms of prevention and resolution strategies, the first is to strictly control the scale of government debt and improve the efficiency of debt utilization; the second is to strengthen communication and cooperation with financial regulators and financial institutions, and take various measures to resolve non-performing assets; the third is to establish a list of "key enterprises" based on Jiangsu's economic foundation and industrial structure, and the government actively intervenes in case of risks; the fourth is to control crazy prices of urban real estate, curb speculative and investment demand, and strictly implement purchase restrictions on bellwether cities of Nanjing and Suzhou; the fifth is to regulate Internet Finance and private financing.