An Empirical Study On The Bank Capital Adequacy Ratio And The Efficiency Of Banks In China

Before 2011, China’s GDP growth rate remained above 10%, after 2011, GDP growth slowed, remained at around 7%. In China’s economic growth at the same time,financial institutions innovation, the emergence of many innovative financial products,financial markets into the growth stage. With the enhancement of financial innovation,financial institutions not only lead to the difficulty of management enhancement, and more and more difficult to control risk. Banks as the main body of China’s financial market, plays an important role in the national economy.Therefore, the healthy development and efficiency of banks not only related to the stability and development of financial markets, but also have a great impact on the macroeconomic operation of the whole country. In 2008 the world experienced a very serious economic winter, the economic crisis caused by the U.S. subprime mortgage crisis initially, eventually spread to the world, to the global economy caused great harm. After the financial crisis, how to further strengthen financial supervision, especially the supervision of banks, has become the focus of research in the regulatory authorities. How to achieve a reasonable balance between bank efficiency and supervision is the core of banking supervision, and many developed countries will be the capital adequacy ratio as a measure of bank supervision standards.Because our country to the bank supervision starts late, the supervising and managing system is not perfect, therefore our country to the commercial bank supervision development road is also very long. In addition, with the opening of the global financial market, foreign banks enter China’s market will cause greater market competition, making China’s banking industry is facing more and more challenges. At the same time, China’s regulatory authorities to further strengthen the effective supervision, control of the bank’s various risks is the future needs of the face of challenges. In bank supervision in the process of commercial bank capital adequacy ratio and bank efficiency often exist in each game. In such fierce competition in global financial markets, China’s banking industry to develop, regulators must adhere to the efficiency of the first, taking into account the new principle of capital safety supervision.In order to realize the healthy, stable and rapid development of the banking industry in the future, we must draw on the international standards and put forward theregulatory policy in line with China’s actual situation. In this paper, the factors of bank capital adequacy ratio of the status quo and the impact on capital adequacy ratio based on Basel III capital regulatory core capital adequacy ratio as the main index, through empirical research on the capital adequacy ratio and bank efficiency related to the profitability of the financial index correlation. In the analysis of the status quo of China’s banking capital adequacy ratio and existing problems at the same time, the game between the bank stability and efficiency put forward some suggestions. In addition, the theory of bank capital supervision in our country is perfect, and in the new economic situation, we can make a theoretical foundation for the reform of China’s banking capital supervision.