CHINESE PUBLIC BANK SOLVENCY FROM 2018 TO 2019

Abstract

The purpose of this paper is to explore the impact of trade war on the solvency performance of the China's banking industry. This paper mainly introduces the basic situation of China's banking industry in the trade war ben-veen the United States and China since March 2018, and investigates its influence on China's banking industry. This paper is quantitative research method by using secondary data from China's top five state-owned banks from March 2018 to September 2019. In this study, SPSS and Eviews are the main tools for analysis, which are statistical tools. Tam writing this article to explore some factors that affect the solvency performance of China's banking industry during the trade war, that is, the independent variable is FER, IMPORT, NII, NOI, the dependent variable is the Debt to Asset ratio. The author finds that foreign exchange reserve and net operating income have significant effects to the debt to asset of banking performance of China, and the impact of import and net interest income on the debt to asset of China's banking industry are not significant. In addition, the author find that trade wars may have a limited impact on China's banking sector. At the same time, it will also be conducive to speeding up the reform and upgrading of China's banking industry, and enhance international competitiveness.