The Impact Of China Countercyclical Capital Regulation On The Profitability Of Commercial Banks

The global financial crisis has made commercial banks operating pro-cyclical exposure in people’s vision. The Basel Committee has developed the "Basel Ⅲ" to strengthen counter-cyclical regulation, to reduce the pro-cyclicality of commercial banks to reduce the impact of the economic cycle. China’s Banking Regulatory Commission to introduce a comprehensive "Basel Ⅲ", and on this basis. Regulatory framework for the establishment and improvement of China’s counter-cyclical capital will be an important impact on the operation of China’s commercial banks, especially the impact on their profitability.China’s commercial banks profit model certain convergence. This paper analyzes the implementation of counter-cyclical capital regulation so that the capital adequacy ratio of commercial banks, the leverage ratio, liquidity ratio and loan loss provisions, and further explore the commercial banks balance regulatory requirements and profitability goals coping strategies, China’s commercial banks should be counter-cyclical capital regulation has a certain significance.The paper is divided into six parts. The first part elaborates the research background and significance of research ideas and capital regulation affect the profitability; In the second part of the theory, capital regulation and the bank’s capital management theory, the study of the later lay the theoretical basis; Part three from the background and current status of the counter-cyclical capital regulation an overview of the counter-cyclical capital regulation; fourth part from the composition of capital adequacy ratio, leverage, liquidity and loan loss reserve way of counter-cyclical capital regulation mechanism of impact on the profitability of commercial banks. Part five of the use of a panel regression model empirical analysis of counter-cyclical capital regulation on the profitability of the commercial banks in the panel regression based on the results of the sensitivity analysis. Counter-cyclical capital regulation will make positive impact on long-term profitability of the commercial banks and on short-term profitability is relatively small. Part six on the basis of the previous text analysis proposed commercial banks by broadening the capital supplementary channels, adjust the asset structure and development of intermediary business, to deal with the strategy of counter-cyclical capital regulation.