The Study On Credit Behavior Of China Commercial Bank In View Of Capital Adequacy Regulation

The capital adequacy regulation of commercial bank is the key content in Basel allthe time. What’s more, Basel Ⅲ has set a still higher demand on capital managementof commercial bank carried out in China, the capital adequacy ratio has on averagereached higher standards at the moment, which has big advantage of the stablemanagement of commercial bank. However, the growth of capital adequacy ratiousually goes hand in hand with credit crunch behavior of commercial bank. The largerthe degree of credit crunch, the larger the impact on economic development. Lookingback on supervision history of US bank industry, it’s not difficult to find that the capitaladequacy regulation carried out by supervision authorities has had a certain negativeimpact on social economy by credit crunch behavior of commercial bank. And therefore,under the background of the whole new round of capital regulation, it’s very necessaryto study how to carry out credit behavior in commercial bank of China facing capitaladequacy stress and what measures to take to revive credit behavior.Firstly, this paper interprets the links between the capital adequacy and bank creditbehavior and the relation between credit behavior of commercial bank and macroeconomy, that capital adequacy regulation will lead to tighter credit behavior ofcommercial bank, which have adverse effects on the macroeconomic operation.Secondly, this paper summarizes adaptive measures often taken by bank industry by thecase of credit crunch which really happened in USA. Another, this paper analyses theproblems that the capital adequacy affects bank credit behavior in detail, the resultshows that China commercial bank has also happened the credit squeeze behavior afterthe capital adequacy requirements improved. Then, by the empirical analysis, this paperstudies what substantive impact on credit behavior of commercial bank the capitaladequacy regulation has had. According to the regression results, numerical regressionof the capital adequacy ratio to logarithmic of the commercial bank credit balance is-0.000594, it’s shows that the change of capital adequacy ratio level will have a negativeimpact on the commercial bank credit behavior, the influence on joint-stock commercialbank is higher than large commercial bank. Lastly, according to the result of theempirical analysis and practical experience of USA bank industry, this paper makesadaptive suggestions so as to decrease the impact on economical operation the credit behavior of commercial bank will have after the capital adequacy regulation isstrengthened further in China.