Study On Correlation Between Banks’ Capital Adequacy Ratio And Operational Performance Based On The Camel Evaluation System

As we all know, commercial banks are special enterprises that are operating currency, and are running in high indebtedness itself, so having enough capital is very important significance for the stability of the bank’s management and maintaining the market confidence.For regulatory capital adequacy ratio, which also is the core of the Basel committee supervision system, has become the policy requirements that commercial bank must be faced in the process of its’ management.The operating performance of commercial banks is a comprehensive index that can fully reflect the situation of commercial banks. Camel evaluation system is a comprehensive evaluation system that the U.S. financial regulatory authorities used to evaluate the operating condition of the commercial banks. Because the effectiveness of the evaluation system, it has been widely accepted in the world now. Based on Camel evaluation system, by using principal component analysis,this article build the commercial banks operating performance index, which can comprehensively measure the performance of commercial Banks. "Commercial bank capital management approach(trial)" is carried out formally in our country On January 1, 2013,and it raises the demand for commercial bank capital adequacy ratio.we may wonder whether the improvement of capital adequacy ratio in China has an effect on the operating performance of commercial Banks ?If there did have an effect on the operating performance,and how?So the research on their correlation has a very important theoretical and practical significance.The structure of this paper are arranged as follows : firstly, we put forward the background and the significance of this paper, and then we have an literature review on the study of capital adequacy and bank business performance as well as the theoretical basis of their relationship. Then, this paper summarized about the theoretical basis of capital adequacy ratio and commercial Banks operating performance and their relationship.We found that the camel evaluation system has a very big advantage on evaluation the performance of commercial bank throughcomparison, and then we analyzed the status impact factors of commercial Banks operating performance. On this basis, by using the data of 14 listed banks in china,we have an empirical analysis on the correlation of the operating performance of commercial Banks and the of capital adequacy ratio,and we draw an conclusion that capital adequacy ratio has a positive correlation on the operating performance of commercial Banks. In addition, this article also examines the relationship between the commercial Banks operating performance and its’ nature, its’ risk degree, its’ asset scale,GDP and the governance structure of the commercial banks, and we find that the nature of the banks has a negative effect on commercial Banks operating performance,the risk degree and asset scale has an positive correlation on the operating performance of commercial Banks, and there is no significant relationship between the operating performance of commercial Banks and GDP and its’ governance structure. Finally,we find that the implement of “new method”, which the supervision department raised the capital adequacy of commercial banks, has no significant effect on the operating performance of commercial Banks. Based on the above analysis, this paper puts forward the Suggestions for the improvement of commercial bank performance and supplementary capital adequacy ratio, which can provide certain reference for the commercial bank management.