The Empirical Analysis Toward The Capital Management Efficiency Of China's Commercial Banks

As the core part of the financial system, the level of the competitiveness of the commercial bank not only has an effect on its own survival and future development, but also has a deep relationship with the national economy. Capital is one of the vital issues for the commercial bank, and the capital management efficiency directly affects its safety and the profitability. However, for a long time, such aspect has been the weakest part in the system of management of China's commercial banks. On one hand, the low level of capital management significantly increased the overall risks; one the other, it also resulted in a tremendous waste of the banks'capital utilization. With the full opening of china's financial industry on December 11th, 2006, domestic commercial banks are facing greater challenges. Therefore, the key to enhance the competitive edge of the banks is to increase its capital management efficiency. On the basis of this, the analysis of such problem will make a more important sense for China.The key to analyze the problem with regard to capital management efficiency is to comprehensively grasp the concepts of the banks'capital and capital management. First of all, after concluding the relevant theories given by the predecessors, here thoroughly discusses such theoretical things from the perspectives of bank treasurers (or the fund managers), the external regulators, the banks'internal risk managers and the investors. Furthermore, on the basis of above, the author sets up the index system for evaluating the national commercial banks'capital management efficiency from the aspects of the situation of capital adequacy, capital structure and the condition of the use of it. In the end, by using such index system, the paper carries out the empirical analysis concerning the situations of the state-owned commercial banks and the other joint-stock commercial banks.The major contributions of this dissertation are the follows: firstly, we bring forward the definition of the banks'capital management; secondly, we design the evaluation index system for the banks'capital management efficiency, which can thoroughly analyze and control the condition of the use of the banks'capital; thirdly, we apply the relevant latest data to do the empirical analysis on the capital management efficiency and provide some corresponding suggestions.