Research On Capital Structure Of KL Bank

As the deepening of China’s financial reform, Banks’ capital structure transfer from single structure to diversified structure. Facing the entry of foreign investors, China’s commercial bank capital structure is not only presenting investment diversification, but also capital form diversification, so structure optimization has become the focus of banking management. Optimization of capital structure can not only prevent financial risks, but also can improve the efficiency of the bank management, strengthen the bank’s corporate governance effect.In recent years, through restructuring and takeover, KL bank has developed rapidly, but compared with other domestic similar size of the banks, KL bank capital management experience and idea are relatively insufficient. In pursuit of expansion, KL bank competed in vulgar, but this kind of development model distorted the reasonable capital structure, lead to high consumption and low efficiency of utilization of Banks’ capital. KL bank has accumulated a lot of financial risks, and encouraged the economic bubble. So to change KL bank’s status, managers need to improve their capital structure. This paper discussed KL bank’s capital structure, by analyzing the bank capital structure present situation and the existing problems, compared the experience of the excellent domestic banks’ capital structure, proposed path of KL bank capital structure optimization.This paper has five parts. In the introduction part I elaborate the topic background, purpose and significance, research methods. The first part introduces the theory of modern capital structure, mainly discusses the several mainstream theory of modern capital structure. Secondly I introduce the KL bank capital structure present situation, mainly analyze the character of KL bank debt, debt structure, ownership structure. In the third part, I find the KL bank capital structure influence factor by case study, respectively compared KL bank debt, debt structure, equity structure with similar size of the listed Banks, analyze and find out problems in KL bank capital structure. And then through the comparison, I conclude the current KL bank’s problem of insufficient capital structure and the causes of the problems. The final part is conclusion and recommendation, summarize the main points of this paper, based on the empirical results and KL bank background, I give the suggestions of optimizing the capital structure.