Research On Leverage Management Of Commercial Banks In China

The financial crisis not only caused a severe blow to the United States whose banking system is developed, also to other countries around the world. During seeking the causes of the crisis, scholars found many banks with high capital adequacy ratio before the crisis also can’t escape this claws.Then people began to realize that only the capital adequacy ratio regulation is difficult to resist the impact of the severe systemic risk. Later, the Basel Committee mentioned the word "leverage ratio "in Basel Ⅲ, and this word begin to be known by us. It is a supplement for the capital adequacy ratio, not a replacement. Capital adequacy ratio and leverage ratio are indispensable and each has its advantages and disadvantages. The study of the leverage ratio in the commercial bank management is of significant now, even in the further.First, this paper analyzes the domestic and foreign scholars’ research on the management of leverage ratio. Then showing the commercial bank capital requirements and leverage ratio regulatory standards in the Basel III as well as our country which do a good bedding for the descriptive statistics and empirical test later. Third, this article classifies the commercial banks according the information provided by Wind, and selects 16 commercial banks as the research sample. Next, calculating the bank’s total assets and the leverage ratio which based on their balance sheet and analyzing the reason causing the poor performance of these banks.The next chapter summarizes the factors that influence the commercial banks’ leverage ratio. The fifth chapter combines these factors and 16 commercial banks’ financial data to conduct a comprehensive descriptive statistics and empirical test. The results show that commercial banks leverage ratio is positive with the size of the bank’s capacity adequacy ratio, financial deepening degree and negative correlation with the non-performing loans ratio, the profitability. Finally, we summarize the problems in the commercial Banks leverage ratio management, and propose reasonable policy suggestions.