Study On The Impact OfCapital Adequacy On The Performance Of Commercial Bank

The bank is the economic organization that pursues the maximum profit, but has the risk, vulnerability and infection compared with other enterprises because of its special capital structure and business operation. Banks in many countries in the world are subject to strict government regulation, as one of the signatories of the Basel Committee, after the introduction of the "Basel ?" in December 2010, China's implementation of the "commercial bank capital management approach (Trial)", from the height, breadth and depth, and propose a more strict requirements to the bank's capital adequacy ratio supervision.The view that stability and efficiency replace each other has existed for a long time in the traditional economics. The purpose of capital regulation is to prevent the banking crisis by limiting the bank's risk behavior which represents a reduction in performance of the banks. Meanwhile, the capital adequacy regulation can reduce the risk of excessive motivation which leads to a reduction in risk of banks and also an improvement in operational efficiency, so it can improve the banks' performance. There hasn't been a unified conclusion of the impact of capital regulation on performance of banks.Firstly to the domestic and foreign scholars on the impact of capital adequacy regulation on commercial bank performance literature were reviewed, found domestic and foreign scholars research on the problem of draw different conclusions. Then, by applying a threshold regression model analysis of capital adequacy supervision from the two aspects of the risks and benefits of commercial bank performance influence, combined with China's capital adequacy ratio supervision on affecting the performance of commercial banks the reality of the situation, selected from 2009 to 2013 data from a sample of five years of China's 16 commercial banks, the regulatory capital adequacy ratio of the threshold effect of China's commercial banks for empirical. The results show that there is a double threshold effect risk on behalf of bank Z value, in threshold value before and after the capital adequacy rate impact on bank risk is asymmetric nonlinear relationship, and have a positive correlation with.The promotion of capital adequacy ratio strengthens the risk control of commercial banks..The total net interest rate of the total assets that represents the bank has a single threshold effect, and the improvement of China's capital adequacy ratio reduces the profitability of the bank.. Finally, the article discusses and summarizes the results, and puts forward some suggestions for the bank.The banking industry of China needs to adjust the structure of capital and liabilities, establish new management and profit concept, and exert the effect of capital adequacy supervision to bank performance.