The Research On Capital Supplement Way And Effects Of China’s Listed Commercial Banks Perspective

Based on the 2010-2013 annual report data of 16 listed commercial Banks as sample, this paper analyzes the effect and capital supplement way of listed commercial Banks in China.Firstly, through the analysis on the advantages and disadvantages of listed commercial bank capital way, this paper argues that:1) Capital added advantage of debt financing in operation process is more simple, and flexible operation, but the biggest drawback is that of creditor’s rights financing cannot raise the core capital adequacy ratio; 2) Make capital equity financing way of the main advantage is able to improve the bank’s core capital, but equity financing program is very complex, conditions are very strict, replenishing capital required for a long time.Secondly, the results of analysis on the status quo of listed commercial bank capital adequacy show that:1) The listed commercial Banks in China have generally high capital adequacy levels; 2) The most long-term subordinated debt supplies bank capital most times, the second is the mix of debt and convertible debt, such as public rights and private placement is less used.Finally, this paper study the short-term and long-term effects of capital supplement way on the benefit of commercial Banks. The research results reveal that: 1) long-term subordinated debt and hybrid capital debt, private placement, convertible bonds of listed commercial bank has a positive effect on its short-term market price, while a rights issue negative effects; Long-term subordinated bonds, convertible bonds has significant positive effect on commercial bank capital adequacy, but the convertible bonds may bring some negative influence to the listed commercial Banks operating, hybrid capital debt may reduce the capital adequacy levels of listed commercial Banks. A rights issue improves the listed commercial bank’s core capital adequacy ratio.According to the results, this paper put forward that, such as rational expansion of credit scale, flexible use of debt capital, reasonable combination of capital supplementary tools.