Capital Adequacy Regulation's Impact On Our Country Commercial Bank Credit

As an important content in Basel Accord Ⅲ, strengthening the capital adequacyregulation is a basic condition to guarantee the sound and stable operation of theBanking. But at the meantime, we hope not that commercial banks adversely affecttheir credit to fulfill the requirement of capital adequacy regulation. Review thehistory, there came the credit crunch and recession after both the United States andJapan implementation the Basel Accord. Because of this, the Basel Committeeorganized to access the impact of the Basel Accord Ⅲ.The results show that thecapital adequacy regulation would indeed have a negative influence on bank creditand macroeconomic in short time.Therefore it is meaningful to research the impact ofcapital adequacy regulation on bank credit combined with Chinese.At first, this paper summarized the capital adequacy ratio status of ourcommercial bank, and then researched the impact of capital adequacy regulation onbank credit theoretically and empirically. The empirical research shows that: The bankcapital adequacy ratio has improved greatly since the formal implementation ofcapital regulation policy. Capital adequacy regulation will bring negative impact oncredit in China, the credit will drop0.007134%after each1%capital adequacy rateincreasing. Finally，I will propose some policy suggestions based on the empiricalresults to avoid the adverse effect when strengthening the capital adequacy regulation.