China Commercial Bank Capital Regulation Procyclicality Research

American subprime problems caused by the economic crisis at the end of2007, quicklyspread to all countries, the height of the global attention, under the background of the regulatorycapital pro-cyclical problem has become the key point of the development of the economy cansteadily. At present, our country banking reform deepening stage, gradually speed up theinternationalization process, vulnerable to the impact of the global financial crisis, the regulatoryauthorities are actively reform the existing supervision system, actively promote theimplementation of the new regulatory requirements, how to effectively avoid regulatorypro-cyclical problem become a difficulty and a focus of discussion. Therefore, studies our countrybank capital regulation pro-cyclical, capital regulatory framework of building of our country aswell as the banking prudent management is of great significance.This article first at home and abroad the research on commercial bank capital regulationpro-cyclical has carried on the summary of the system. Secondly, the regulation of Basel majorrisks involved to illustrate the evolution process, and introduced the development course of capitalregulation in our country and deficiency, the formation mechanism of capital regulationpro-cyclical. Before, after, based on the theory of constructing model selection of economicgrowth (GDP), capital buffer (BUF), the total amount of non-performing loans (LOAD), return onequity (ROE), and the discount rate (R) as the measurement indicators,16listed Banks in2007-2007as the research object of empirical analysis, the results showed that capital buffers andnumerical there is negative correlation relationship between GDP, shows that our countrycommercial bank capital buffers has significant pro-cyclical; Total non-performing loans of theLOAD and that there was a positive correlation between the capital buffer that currentnon-performing loans increases, the bank will hold more capital buffers in response to the currentloss; Rediscount rate R and capital buffers appear positive correlation, and show that when theeconomy is booming, monetary policy easing, rediscount rate is reduced, bank lending increase,capital buffer to reduce; Tighter monetary policy, rediscount rate increased, corresponding totighten bank lending, capital buffers will improve accordingly. Finally on the basis of theoreticalanalysis and empirical research, puts forward the measures to ease the pro-cyclical capital regulation proposal, and summarise the above conclusion, the lack of reflection on the article andput forward the improvement and development direction in the future.