Abstract:

The systematic risk of banks is studied through analyzing the credit cycle in China By using the SPSS software to conduct principal component analysis method, regression analysis is made between the main components obtained and credit growth, which turns out that the fluctuations of credit cycle significantly affect the systematic risk of banks, and the credit expansion is more likely to increase the systematic risk of banks Therefore, banks should pay close attention to the changes in monetary policy and the associated credit policy, so that the systematic risk of banks can be avoided

Key words: credit cycle, systematic risk of banks, principal component analysis