Abstract:
With the global spread of financial crisis at Wall Street, it is one of common concerns of all scholars, both at home and abroad, whether China can survive the crisis alone and whether its banks and economic entities can avoid not being infected by this worldwide financial crisis. This study samples badlyaffected countries and regions in Asian Financial Crisis to empirically analyze how financial crisis will affect economic entities through the instable banking system and make them fragile to economic crisis. The results show that the health of the bank system as the leading source of debt financing of economic entities will directly affect the latter by means of credit and loan. The higher the liability of an enterprise, the worse its productive achievements, and the more vulnerable it is to economic crisis.
