Abstract: In China, the restrained financial institution makes the State Owned Bank hold the credit market。During the course of the transition of commercial bank,the institution brings on credit risk with the formation of problem loan, results in the markets risk in the bank system。 The over weighted proportion of the loan from the state owned bank in the country bank system and the loan in the assets of the state owned bank, by the nonlinear effect , induce the systemic risk in the country In order to ...