Research of Financial Ecological optimization of Network that based NK model

Abstract. Analysis of uncertainty types and correspond flexible decision. Xavierde Groote proposed holistic conceptual framework for analysis flexible modeling, WCJordan and SCGraves work process for flexible production systems from the perspective of system task allocation methods. China also has many scholars analyzes the flexible from different angles, and conducted conceptual description of the flexible from different angles. Indicators proposed objective flexible production system and the following elements to be achieved. In accordance with the impact of internal and external environment to different parts and aspects o of the production system, the flexible elements of the production system can be divided into 11 categories, namely: device flexibility, logistics flexibility, job flexibility, process flexibility, routing flexibility, product flexibility, production flexibility, expansion flexibility, variety of flexible, flexible delivery, flexible production organization. Analysis of flexible production system based on NK fitness model, in this model, N refers to an organism contains the total number of factors, K indicates the degree of interaction between these factors, and the contribution of a factor K depends on the properties of other genes.

Keywords: Financial Ecological, optimization, Network, NK model.

0. Introduction

Commercial banks are an important part of the modern financial industry, and the risk is one of the most fundamental factors that attribute to the commercial banking system and commercial banking activities, but also the most important part in the entire commercial banking operations. Since the birth of financial services, commercial banks have been the most important institutions as the financial resources to realize the rational allocation, so that it can be developed and survived. With the advancement of social, technological, and commercial bank management process becomes more complex, which faced more and more, bigger and bigger the types of risks. Under normal circumstances, the main risks commercial banking institutions faced include: credit risk, market risk, liquidity risk and operational risk. Among them, the operational risk is widely present in every aspect of operations. Due to the risk of loss resulting from the operation can not be ignored, especially related to operational risk during the governance structure of banks, commercial banks operational risk management has become a core part of financial institutions. In addition, many major Western countries are aware of the importance and significance of management due to operating losses resulting from the financial risk in the industry event and operational risk with regulatory authorities, while it also forcing the industry to enhance the theoretical and in-depth study of operational risk.

1. NK model proposed

NK model originally proposed from studies of biological systems. There is a controversial issue in the theory of evolution, and that is the history of life is to include the emergence of evolutionary transaction and it still contains not only built up novelty from small adaptive evolutionary step. In macroevolution, a lot of phenomenon can not be explained by the small accumulation of adaptation steps, so it became difficult problems in macroevolution. Studies of evolutionary genetics had not contributed to directly evolution of the macroeconomic, so many biologists Default: macroevolution and microevolution is really a completely different field of study.

2. Conclusion of NK model

Application of NK model approach is often combined with fitness landscape theory. In the model, all the constituent elements of the system have a certain degree of adaptation that influence the general adaptation of the system and it is defined as the average of all the constituent elements of the system to adapt to the impact. Due to the interaction between genes is often very complicated, it is difficult to know the exact impact of each gene on the overall fitness of the system, the system is generally too complex, and so it is difficult to draw a function of the system to adapt degrees.

3. Ecological network of finance

Different risk tolerance of investors can be classified according to different categories, such as investor’s risk appetite, risk -averse investors, including individual investors and institutional investors; according to different participants in financial market who may divided into different categories, such as lenders, equity financing, etc. ; according to different financial sectors, it also can be divided into major three financial intermediaries : deposit-taking financial institutions (bank-based), insurance intermediaries and securities intermediaries. By combining various different types of investors, financiers and intermediaries, which constitutes a financial ecology in different subsystems, such as risk -averse depositors, one investor deposits offered by banks through the funds devoted to the banking system, funds of bank depositors transfer to the lender by the lending facility, which constitutes a bank deposit and loan business that take an indirect financial subsystem as a center, while a financial body may also exist in different subsystems. For example, risk -averse investors can get stable interest income from bank deposits, the bank allocate the hands of capital to the financers, risk -averse investors can also get predictable and stable income by purchasing bonds of loans, while the corresponding funds be allocated to finance operations through the securities market, in addition, risk -averse investors can also buy insurance products to enter the insurance market. Insurance intermediaries and investors can make this kind of money and enter the securities market through the purchase of sound-based fund of investment .The financiers also can use it in the securities market. Similarly, individual financiers, financial intermediaries have different binding exist in different subsystems. So, strictly speaking, financial body is composed of intertwined and interacted financial ecological networks, and as a node in financial ecological network, every financial body can be combined with other financial subjects through different links to completed a specific function of financial intermediation. Success of each financial subsystem will help capital ecological network achieve effective allocation and risk, and any failure would result in the risk of a subsystem generates and accumulates in certain local areas, when the risk accumulated to a certain extent, it could lead to collapse of the entire financial system.

4. NK model and financial ecology

A virtuous cycle of financial ecological network can coordinate the efforts of different subjects without limiting their financial goals, you can generate self-organizing and adaptive in interdependence and mutual influence among members. According to members of the general composition in the financial system, the interdependence between investors, financiers and financial institutions constitute a complex financial ecosystem. Investors classified according to their degree of risk-averse. The financier is divided according to different segments of market, the financial institutions divided into three departments according to the securities, banking and insurance, when the activities of these three actors have autonomy, different investors, financiers combined with financial institutions composed subsystem that have the ability to automatically adapt, this financial system is basically sound.

4.1 Optimization of financial ecological environment should play a leading role of government

The optimization process of the financial environment is expanded by the leading of local government. Whether it is the development of rural financial markets or farmers' loan certificate of guarantee agencies and other intermediary organizations, they are supported or carried by the direct or indirect policy of local governments. First, government proponent construction of financial ecological environment; secondly, only the local government have this capability that allow a place where can build up financial environment from the macro. This point is consistent with China's economic reform in the government -led progressive path. Therefore, the government should play a leading role in the construction of financial ecological environment.

4.2 The importance of construct rural financial ecological environment in advance

In our country, there is a dual economic structure makes extremely unbalanced between urban and rural development, in the process of construct financial ecological environment, its internal need is rural ahead. If you are not focusing on constructing the rural financial ecological environment, urban financial environment has been optimized first, which will directly lead to an outflow of funds in rural areas, thus further increasing the financing difficulties of "three rural". So construction of financial ecological environment began in the rural areas is conducive to the balanced development of urban and rural financial ecological environment. The financial environment is start with the rural financial market. Agriculture innate "inferiority" makes farmers fall into financing difficulties. Through loans permit for farmers and the implementation of multi-family UNPROFOR policy, as well as government-led credit village, the construction of the user making the farmers get a letter of credit, it enhancements to improve the farmers’ quality of credit and they can get more loans, it effectively support the development of rural economy. Development of rural economic further promote the construction of urban financial environment.

4.3 Institutionalized construction of financial ecological environment

In order to achieve continuous optimization of the financial environment, the government will encourage various institutionalized means. One of the SME credit guarantee institutions incentives institutionalized ; Second, it builds network platform for a public information of finance, it updates information of the corporate credit, and it achieves bank's credit rating is consistency with the information platform ; Third, it improves cooperation mechanisms between the banking and judicial, business, quality supervision departments ,which make bad credit companies increase their cost of default by the government and the judiciary ; Fourth, the government will boost to institutionalization of the financial environment, to preserve bank debt, and prevent financial risks and work the township government departments into scope of examination. Five, it achieves socialization of monitoring credit. Bad behavior of credit will promptly be exposed by the media. Six, it achieves standardization of financial ecology through establishing evaluation system of financial ecological environment. Local government -led financial ecological environment will eventually become the image of engineering if not institutionalized. The government encourages and maintains policies to all kinds of design system, it sustained and optimized financial ecological environment.

5. Optimize the financial environment is important to the promotion of development of regional economic

The quality of a city's financial ecological environment directly affects the city's sustainable development and financing investment, the experience of international economics and the development of capital market tells us that we should focus on good areas that their capital are generally good in the financial ecological environment, and capital tends to stay away from these areas where their financial ecology environmental are poor.

5.1 It conducive to the harmonious development of regional economy

Continue to promote financial ecological environment is conducive to optimized regional environment and is better promote the development of economic in the region. Only true from a legal and institutional form, effective protect property rights and claims, to promote construction of social credit system, to the format a good regional financial ecology, it can truly inspire entrepreneurship and enthusiasm to investment from the internal mechanism, it resulting in an institutional protection to stable and continued healthy development of social and economic in the region.

5.2 It helps reduce the risk of regional financial

Continue to promote financial ecological environment is conducive to preventing and resolving regional financial risk, it reduce non-performing loans of financial institutions, while it as well as helps to optimize the external environment in the financial operations, it resolves the outstanding contradictions and problems that affect the safety and soundness of financial operation fundamentally, it build a long-term mechanism to re- guard against and defuse financial risks, it consolidates the foundation of financial stability, in order to better promote the further development of regional economy in the financial sector.

5.3 In favor of the establishment of regional finance and positive feedback mechanism to the development of regional economic

Under conditions of market economy, good regional financial ecological environment is not only promotes the sustainable development of regional finance, and it can promote the rapid development of the regional economy through play central role of the financial. In return, the rapid development of the regional economy will promote development of regional finance, thus it forming a positive feedback mechanism between the positive interactions.

5.4 Transforming the development of economic, strengthening and optimizing economic base to the financial environment

Economic decisions finance, financial counterproductive economy. Good development of economic areas, space of financial development is large. Conversely, poor development of economic area, the space of financial development is small. All localities should take the initiative to adjust the economic structure, consciously transform the development of economic, it improve the effective demand for financial economics, and creating a vast space for financial development. Financial sector must also be combined with the actual development of the local economy, innovate financial services and products to effectively meet the needs of economic development.

5.5 Sound and comprehensive financial organization system, optimize operational efficiency to improve the financial environment

Financial institutions are the main financial environment. Tissue system of financial institutions is complete, fully functional, rational structure, efficient and orderly flow of financial resources. The financial environment can be full of vigor and vitality. It vigorously bring financial institutions and domestic joint-stock commercial banks, and actively promote the establishment of community banks, rural banks, small loan companies and rural mutual cooperatives, support and meet the different areas, diversified financial needs in different levels ; it accelerates the establishment of Business, policy and professional insurance coexist multi-level system of the insurance market, it develops services in the "three rural" areas such as insurance and livelihood activities ; it promotes the securities and futures, financial leasing, trust development, offers a variety of financial intermediation services ; regional intermediary organizations to improve the system, and promote the establishment of regional multi -level, comprehensive security system, which widely attract capital into the commercial guarantee companies ; it introduce and establish an independent, objective third party credit rating agencies, and explore the establishment of a unified credit evaluation system and the credit rating agency certification system.

6. Summary

Fundamental measures is to optimize the financial ecosystem or remove artificial restrictions on innovation and development of financial, it established contacts bridge with in banking, securities and insurance markets, it creates more combination possibilities and channels to the independent financial body , it extends the adaptive walk and ensures that the financial the system can continue to find the optimal state in the process of dynamic evolution, and it achieves a reasonable distribution of funds and the efficient allocation of risk.

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