Research On The Capital Complement Of China’s Small And Medium-sized Listed Commercial Banks

This paper,on the basis of Pecking Order Theory,mainly studies the capitalcomplement of small and medium-sized listed commercial banks from the perspectiveof“numerator”in the formula of Capital Adequacy Ratio,namely,the capital supervisionstructure of commercial banks.By contrasting the capital complement of commercial banks form home andabroad,it concludes that the CAR of small and medium-sized listed commercial banks inChina is lower and the capital structure is unreasonable.Though various measures havebeen taken to replenish the capital,most business banks carry out the measurespassively.Due to limitations of ways of capital complement,the effects of capitalcomplement are not obvious.In addition,ways of capital complement are badly againstfinancing preference order.Many banks turn profits to capital in theinternal,however,due to their weak ability of making profits and less amount of capitalcomplement,turning profits to capital is not the core channel to replenish capitals.In theexternal financing,most of the small and medium-sized listed commercial banks preferto adopt debt financing,but the effects of capital complement are very tiny and the lackof creative tools is another problem.Therefore,it is a practical choice for small and medium-sized listed commercialbanks to collocate and optimize ways of capital complement reasonably.China’s smalland medium-sized listed commercial banks should change the idea of capitalmanagement,strengthen capital management,choose a suitable way of capitalcomplement,set up dynamic capital complement mechanism,increase the force ofcapital complement creativity,improve ways of capital complement and establish along-term mechanism of capital complement.In addition,the supervision departments should take various relational measures tofacilitate the development of small and medium-sized listed commercial banks,forexample,improving the market and policy environment of capital complement,assuringthe construction of capital complement mechanism in a comprehensive way andmultiple levels.At the meantime,the small and medium-sized listed commercial banksshould also take the chance of capital complement to mainly focus on the reform ofcompany management,procedure creation and business transformation,improve the corecompetitive ability and promote a steady,healthy and sustainable development,hoping tomake a contribution to economic construction.