The Research Of Capital Adequacy Ratio On The Operating Efficiency Of Commercial Banks In Chinese

Under the background of financial globalization, the degree of financial liberalization is deeper. Financial regulation become more and more complexly. Banking is the main sector of the financial industry in China. It concerns the whole national economy. Whether banking can maintain a stable and efficient operation will have a direct impact on the development of the financial sector. As the reflection of competitive ability of banks, operating efficiency of banks has closely correlation to the development of banks. The capital adequacy ratio is an important regulation index in the bank regulation system; its volatility has significantly impact on the operating efficiency of banks. Therefore, people should keep enough attention on the regulation of the capital adequacy ratio and operating efficiency of banks in both regulatory and economic perspective. The financial regulator of every country made some corresponding policies and regulations to restrict some financial innovation business respectively; special attention was also paid to the capital adequacy of commercial banks. Under this background, it is of great theoretical and practical significance to study on the relationship between the capital adequacy ratio of China’s commercial banks and their operating efficiency.In this paper, we firstly reviews and summarizes the results from the domestic and foreign literature research, and takes capital adequacy ratio of commercial banks and efficiency theory as the theory of supporting. The annual data from 2009 to 2014 of 14 national commercial banks in China is selected as sample data, the operating situation of commercial banks in China for the last few years is analyzed on the overall through the descriptive statistical analysis of the sample, and then, a multiple linear regression model is established, and regression analysis is established by R software, the regression results show that:The capital adequacy ratio has a significant positive impact on the ROA. Therefore, when evaluating the bank efficiency by profitable indicators, the improvement of the capital adequacy ratio can help enhance bank efficiency, even has a positive effect on bank efficiency. The regression results show that the CAR showed no significant correlation with LDR and BLR, indicating that the change in CAR cannot influence the safety and liquidity of the bank. The end, the capital size in banks has significant positive mpact on the ROA, LDR and BLR.Research using financial index analysis method shows that that the relationship of the capital adequacy ratio and bank profitability index is uncertain.