Evidence map›Paper›PMID 37267344›Full record

ArticlePloS one2023

Early warning model and prevention of regional financial risk integrated into legal system.

Yanyu Zhuang, Hua Wei

Abstract read
In one paragraph

Article in PloS one, 2023. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 1 paper.

0numbers the graph read from it
0cells of the map it votes in
1citing papers in PubMed
–field-weighted citation impact
1 · What the graph read from it

What it found

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2 · The registry

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3 · Its place in the literature

Who cites it

1 citing paper in PubMed.

  1. Article
4 · The record

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PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.

5 · Who and what money

Authors and funding

2 authors.

Yanyu ZhuangKoGuan School of Law, Shanghai Jiao Tong University, Shanghai, China.ORCID https://orcid.org/0000-0001-8431-2287
Hua WeiAntai College of Economics and Management, Shanghai Jiao Tong University, Shanghai Development Strategy Research Institute, Shanghai, China.

Funding

No grant is acknowledged in the PubMed record.

6 · The paper itself

Abstract

In order to improve the laws and regulations of the financial system, in the construction of laws and regulations, the traditional financial risk Early Warning (EW) model is optimized. The financial prevention and control measures with legal protection are implemented to warn the financial risks, which plays an important role in the construction of the rule of law in the Financial Market (FM) and the establishment of financial risk prevention and control laws and regulations. This paper combines the deep learning model and the Markov regime Switching Vector Auto Regression (MS-VAR) model and constructs a regional financial risk EW model from the following aspects: macroeconomic operation EW indicators, regional economic risk EW indicators, regional financial institution risk EW indicators. The model is empirically researched and analyzed. The results show that the fluctuation trend of the macroeconomic pressure index in the time series is relatively large, and the overall fluctuation of the regional economic pressure index is small, and fluctuates around 0 in most periods. After the financial crisis, local governments stepped up their supervision of non-performing corporate and household loans. From 2011 to 2018, the non-performing loan ratio began to decline, and the overall fluctuation of the regional financial comprehensive stress index was small, fluctuating around 0. Due to the lack of legal regulation, from the perspective of the regional economy, the risk level is more likely to change from low risk to moderate risk, while the risk status is less likely to change from high risk to moderate risk. From the perspective of regional financial institutions, the probabilities of maintaining low risk and moderate risk are 0.98 and 0.97, respectively, which is stronger than maintaining the stability of high risk. From the perspective of the state transition of the regional financial risk composite index, the probability of maintaining low risk and high risk is 0.97 and 0.93, which is higher than maintaining the stability of medium risk. The Deep Learning (DL) regional financial risk EW MS-VAR model has strong risk prediction ability. The model can better analyze the conversion probability of regional financial risk EW index and has better risk EW ability. This paper enhances the role of legal systems in financial risk prevention and control. The regional financial risk EW model incorporating financial legal indicators can better describe the regional financial risk level, and the EW results are basically consistent with the actual situation. In order to effectively prevent financial risks and ensure the safety of the financial system, it is recommended that the government improve local debt management, improve financial regulations and systems, and improve the legislative level of financial legal supervision.

Identifiers

PMID37267344
PMCPMC10237655

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LicenceCC BY
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Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.