The Research Of Capital Adequacy Ratio On The Efficiency Of Commercial Banks In China

Along with the acceleration of the domestic financial system and increasingly stringent regulatory measures, it is more competitive along the banks, which makes commercial banks improve their competitiveness by all kinds of ways. To be the embodies of banks'competition, efficiency determines the development of the banks, The level of efficiency of commercial banks directly related to effects of social resource allocation, then it depends China's economic development, so it is consistent with the specific conditions of our country to research the efficiency. For the second reason, Capital adequacy ratio is an important indicator for regulators regulating commercial banks, it is necessary and having practical significance to research if capital adequacy ratio can affect the efficiency of commercial banks. The article researches the relationship of capital adequacy ratio and efficiency of commercial banks, and it explains the specific reasons for the relationship.In this article, capital adequacy ratio of commercial banks and efficiency theory as theoretical supports, it learns with the capital adequacy ratio improved the efficiency of listed banks also increased significantly l adequacy ratio of banks listed on the efficiency. In the process of empirical analysis, the article researches the relationship between capital adequacy and efficiency of 11 listed banks from 2005 to 2009, it also analyzes the reasons and gives policy recommendations by constructing panel data models. The results show that, there is a significant positive correlation between the efficiency and capital adequacy ratio, with the capital adequacy ratio improved, the efficiency of listed banks also increased significantly.