Motivation Analysis Of Capital Adequacy Ratio Of China's Banking Regulatory Changes

The paper analyzes the development in the commercial bank capital adequacy regulation in China and attempts to find the motive behind the change. The paper starts from the theory basement of the capital ratio supervision , and proves that the mission of capital ratio is to make up for the moral hazard caused by deposit insurance system. Then based on the commercial bank environment and the supervision environment, The paper gives a theoretical analysis to the validity of capital adequacy regulation. And then the paper brings out empirical study for the changes of Banks capital ratio,risk asset choice,bank performance and loan amount after executing capital supervision . By theoretical analysis and empirical study, the paper discovers the motive of the development of capital supervision.The paper can be classified into three parts. Chapter one is the first part, it is to narrate the theory basement of capital ratio supervision and brings out the reason for bank capital supervision. The second part includes two chapters, it is the main body of the paper. This part proves the motive of the development and change of capital adequacy regulation by theoretical analysis and empirical study. The second chapter analyzes that state-owned commercial banking system,deposit insurance system,loose regulation will have a negative influence on bank capital regulation. Besides, the chapter uses mathematical model to prove that capital regulation will cause crunch impact .The third chapter inquires into the history of bank capital regulation according to the practice of the capital regulation in China .Then the paper brings out the reason for the lack of bank capital ratio.Then the paper analyzes the relationship between capital ratio and bank performance and the tighter capital regulation's influence on the macroeconomics by empirical study .The fourth chapter is the third part...