Abstract The impact of the reform of the foreign investment negative list system on bank risks is a realistic issue worthy of attention. Using the macroeconomic fluctuation model under the open condition, this paper discusses the influence mechanism and effect of the negative list system of foreign capital on banking risk. Based on the panel data of 53 countries around the world from 1996 to 2017, this paper comprehensively uses the ratio of non-performing assets and Z index to measure the risk level of banking industry in each country. And the Difference-in-Differences Modal (DID) and multiple robustness test estimates are also used in this paper to examine the impact of the negative list system of foreign investment access on the banking risk of the implementing countries systematically. The study finds that the negative list system for foreign investment in the banking industry has significantly reduced the risk level of the banking industry. Moreover, when the degree of openness of the capital account of the implementing country is relatively low, or the Legalization level level of the implementing country is relatively high, the effect of the negative list system of foreign capital access to reduce banking risk is more obvious, and vice versa. Therefore, actively expanding the level of opening up of the banking industry, perfecting the supporting system of the banking industry's foreign negative list and comprehensively enhancing the abilities of financial supervision and governance are of great significance for the promotion of the international competitiveness of China's commercial banks and the prevention of financial risks.
LU Xuehuan,YANG Suiquan. A Study on the Influence of the Negative List System of Foreign Investment Access on Banking Risk. Economic Survey, 2021, 38(3): 055.
2021, Vol. 38 
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