Study On The Relationship Between The Capital Supervision And The Portfolio Risk In Commercial Banks Of China

Governments pay close attention to the supervision and management of banking problems to stabilize the finance system and improve the economy, and the adequacy ratio supervision is the core of banking supervision. The adequacy ratio supervision requires the banks to raise capital and reduce the portfolio risk, in order to withstand the impact of adverse factors, reduce the possibility of bank insolvency and maintain the stability of the banking industry. However, can the adequacy ratio supervision reduce the portfolio risk effectively, academia still controversial about this classic problem. Chinese financial supervisory authorities attach great importance to the bank's capital supervision, and promulgated"Management of the capital adequacy ratio for commercial banks", which marks the beginning of the bank's capital has gradually gotten strict regulatory capital adequacy ratio supervision stage. So it is necessary to analysis the impact of capital adequacy ratio to the portfolio risk, which will help to summarize the experience and lessons, to improve the financial supervision policy, to enhance the effective of the financial supervision and management.This dissertation analysis of the theoretical and empirical literature associated of the capital adequacy ratio supervision and the portfolio risk, tells us the reason for the bank to pursuit risk and the necessity to build a capital Supervision scheme, describes the development process of capital adequacy ratio control after the Basel Accord was taken into force, describes the current situation of China's capital adequacy ratio supervision. Then, based on the environment of banking industry in China and regulatory environment, we use the relevant data of the banking industry in china, analysis of the impact of the implementation of"Management of the capital adequacy ratio for commercial banks"on the capital adequacy ratio and the portfolio risk with the fixed effects regression model. And we discuss the relationship between capital adjustment and portfolio risk adjustment with 3SLS, find out the measures of the capital adequacy ratio supervision can or can't effectively reduce the portfolio risk.This dissertation find out that: Firstly, after the"Management of the capital adequacy ratio for commercial banks"was brought into effect, the measures of the capital adequacy ratio supervision are effective, it will help to raise the capital adequacy ratio and the return on assets, can effectively reduce the portfolio risk and the bad loan ratio. Secondly, the measures of capital supervision and the capital supervision pressure can effectively reduce the portfolio risk, but the capital supervision pressure can not raise the capital adequacy ratio effectively. Thirdly, the bigger the commercial bank assets, the easier to adjust the adjusted capital. The portfolio risk problems by the rapid growth in the scale of the commercial bank asset will not immediately evident, so the bank shareholders and regulatory authorities should keep a sober mind. Fourthly, the commercial banks will improve the capital adequacy ratio and decrease the portfolio risk in a good macroeconomic situation. Fifthly, state-owned and other commercial banks have no prominence difference in asset risk adjustment. Sixthly, the main way to raise their capital adequacy ratio is to enhance the profitability of commercial banks in China.