The Research Of Capital Regulation On The Efficiency Of Commercial Banks

Commercial banks have a very important position in China's financial system and the economic system.Therefore,the efficiency of commercial banks and its influencing factors,has become one of the hot issues in the financial world.The efficiency of commercial banks is the core content of competitiveness.From the"Base 1" to "Base?",the evolution of the regulatory capital can be seen,capital regulation of commercial banks becomes more and more strict,this will inevitably affect the operational efficiency of commercial Banks.At the same time,our commercial banks are facing fierce competition in the domestic counterparts and foreign banks,and the focus of competition is the competition efficiency of Banks.In this context,this paper studying the effect of capital regulation on the commercial bank efficiency has important significance.This paper selects 45 commercial banks in China as the sample,using the DEA-Tobit analysis to study the impact of capital regulation on commercial banks'technical efficiency.Firstly,this paper uses DEA model to calculate the efficiency of our 45 commercial banks.The results showed that there was some difference of efficiency between commercial banks.Non-state-owned listed banks technical efficiency is highest.State-owned commercial banks pure technical efficiency is highest.Non-listed banks technical efficiency,pure technical efficiency is low,but the scale efficiency is higher.In addition,the state-owned commercial banks are basically in phase decreasing returns to scale.Non state-owned-listed banks are constant returns to scale or decreasing phase,non-listed banks almost in phase of increasing returns to scale.Then,this article starts from two aspects of external and internal regulation to analyze the impact of capital regulation on efficiency of commercial banks,in which external supervision selected capital adequacy ratio(CAR),the deposit-loan ratio(CDB),liquidity ratio(LR)and provision coverage ratio(BBL)altogether four incdexes,while the internal capital regulation selected the risk-weighted assets yield(RAROC)index.The results show that the CAR and LR had no significant effect on the efficiency of commercial banks,both BBL and CDB have a significant correlation with commercial banks efficiency.RAROC has a positive role on the efficiency of commercial banks.Finally,according to the current situation of China's commercial banks and the empirical results,this paper put forward some specific policy recommendations as follows.Commercial banks can not just be satisfied with the amount of external capital regulatoiy standards,but also set up with RAROC as the core of economic capital management philosophy.Strengthen internal risk management.Commercial banks should change the capital supply way,strengthen capital management,implement flexible capital adequacy constraints,increase the loan deposit ratio index of elasticity,establish a good system of provisions,accelerate the transformation of the business model of commercial banks.