Our Country Commercial Bank Capital Regulation Pro-cyclical Research

Since the financial crisis Swept through the global in2008, the financial system pro-cyclicality widespread attention as one of the reasons of the crisis, as of great significance to the economic stability of the capital regulation, the pro-eyclical is widely discussed. At present, China’s banking industry in the deepening of reform, gradually speeding up the process of internationalization. regulatory authorities are actively reform the current regulatory system in Basel II and Basel III to both the promotion period, therefore, the study of bank capital regulatory pro-cyclical the existence of the transmission mechanism, as well as pro-cyclical effect of the degree, are of great significance for China to establish an effective capital regulatory framework and promoting the development of the banking sector robust.In this context, the paper method of comparative analysis of foreign theoretical model, select the15listed banks in the2004-2010panel data of capital regulation along the periodic qualitative and quantitative analysis. In the Specific of content, the articles comb the basis of the relevant literature at home and abroad first. And then introduce the foreign classic theoretical model to explain the cyclical capital regulation and come to the bank’s capital, regulatory capital, excess capital three pro-cyclical effects of conduction channels, and then combine with different stages of the Basel regulatory capital requirements, analysis of the different channels of transmission mechanism, concluded that the importance of excess capital channel, and to lay the theoretical foundation behind the empirical model selection and testing. Secondly, combined with the specific situation of China, to review the course of development of China’s capital control in a phased manner, to analyze the situation of the capital regulation, to provide a realistic basis for o the articles, sample selection and model revised.Finally, on the basis of the above two aspects, with reference to foreign empirical model, select the samples since the specification supervision, to explore China’s capital control pro-cyclical existence and characteristics, and relevant policy recommendations based on the empirical findingsThrough this research, the conclusions reached are as follows:(1) Capital regulation pro-cyclical mainly from the bank’s capital, regulatory capital, excess capital.Among the three channels of conduction. the excess to capital pr-cyclicality of capital regulation of decisive significance.(2)Different Basel Agreement with different conduction channels and effect, with introduction of the credit rating of Basel agreement, the pro-cyclical enhanced.(3) China’s capital regulation is the existence of the pro-cyclical, excess capital held by the economic cycle fluctuation effect was a counter-movement to enlarge the economic cycle.(4) Excess capital held by an excess capital, the rate of bad loans and assets yield.