Abstract
The purpose of this paper is to analyze the systemic risk of the Chinese financial institutions following the financial crisis of 2007. We estimate the systemic risk of a sample composed by 70 Chinese financial institutions through the period beginning on 02 January 2008 to 30 June 2015. We utilize the SRISK as a measure of systemic risk. This measure aims to capture financial institutions activity stress and its potential to become systemic. The proposed measures capture not only individual financial institutions vulnerability, but also the stress dependency structure between them and the Chinese financial system. In addition, these measures can be quite useful for identifying systematically important banks. Furthermore, the empirical results show that the level of systemic risk supported by the Chinese financial institutions is very elevated. The contribution of each institution in the risk of the financial system in the China is very important. The decomposition of systemic risk indicates that the institution has the higher level of debt, contributes positively and extremely to systemic risk.