Study On The Periodicity And Influence Factors Of Capital Buffers Of Commercial Banks In China

The economic impact of the American economic crisis outbreak in2007to all the countries in the world is very big and different countries are affected by the degree of different. Countries are trying to out of the doldrums and regulatory authorities have to rethink the supervision policy. FSB and G20believe that dear periodic behavior of commercial banks is the main factors that influence the safety of the financial system. Subsequently,《Basel Ⅲ))proposed the use of countercyclical capital buffer to alleviate dear cycle effect of commercial banks. Scholars have generally concerned commercial banks’ dear periodic behavior. China as a member of the bank for International Settlements, resolutely implement the《Basel Ⅲ》 regulatory standards, but if regulation is effective, that is to say whether the capital buffer of commercial banks in China is reverse cycle has no unified. This paper analyses the capital buffer cycle and factors that influence capital buffer.Firstly this paper summarizes the research of other scholars on the capital adequacy ratio, capital buffer cycle and influencing factors of the capital buffer. Then, this paper study cyclical capital buffers of commercial banks in China in use of a panel of individual fixed effects method and OLS of the two methods, the results of the study show that there is a positive correlation between China’s commercial bank capital buffers and GDP growth rate, that is to say the capital of commercial banks in China is reverse cycle. This paper explains the reasons of commercial banks hold capital buffer and the commercial bank has the reason pro cyclical. Finally, the analysis using Panel Individual Fixed Effects method analyzes the influences of other factors on capital buffer. This paper focuses on the analysis of liquidity creation on the different effect of commercial banks and the study found that the liquidity creation has different effects on the different nature of the commercial bank. There is a positive correlation between capital buffers and liquidity creation of foreign bank; city commercial banks and joint-stock commercial banks’ capital buffers and liquidity creation have a negative correlation, and the joint-stock commercial banks is negatively related to stronger. In the last part of this paper, in view of the research problems and the conclusion put forward the corresponding policy recommendations, and point out the limitations and shortcomings of this study.