The Impact Of Capital Regulation On The Credit Structure Of Commercial Banks

In the context of economic globalization,the outbreak of the financial crisis has been able to shake the global economy,so it is particularly important to strengthen supervision.Under the background of the issue of Basel Ⅲ,as well as our country in accordance with their own actual conditions on 2012 issued a new "commercial bank capital management approach(Trial)",commercial bank capital regulation has become the core of banking supervision.The bank’s capital supervision can help commercial banks to effectively resist risks,maintain the stability of the entire financial system,and ensure the smooth operation of the entire macro economy.However,many scholars at home and abroad have found that the capital regulation of commercial banks will significantly affect the bank’s credit behavior,such as many countries have different levels of credit crunch phenomenon.In this paper,the effect of capital regulation on loan structure is studied with the combination of theory and practice.Firstly,it constructs the theoretical framework of the impact of capital regulation on bank loan structure,and puts forward three hypotheses on the impact of capital regulation on loan structure.Then use the data of 155 commercial banks to conduct empirical research,the main explanatory variable is the bank’s capital adequacy level.The capital adequacy level is divided into three types of capital adequacy,capital constraints and capital shortage,and two dummy variables are introduced into the model.Further,in the model,the cross terms of the dummy variables and the logarithm of the size of bank assets are put into the model to verify the scale effect of capital regulation on commercial bank loan structure.The empirical results show that under the capital supervision,if the bank capital adequacy ratio is low,it will increase the low risk,low capital consumption loan ratio,such as personal loans,secured loans,short-term loans;if the capital adequacy ratio is higher,then there will be a power to increase the high risk,high capital consumption loan ratio,such as corporate loans,credit loans,medium and long-term loans.But this effect is more significant for smaller banks than for large banks.So the influence of the capital supervision system on the bank loan structure will be affected by the scale difference.The current capital regulation system on the loan structure adjustment is very obvious,but also reflects the bank capital regulatory measures are effective.The regulatory authorities can consider the difference between the bank management,set a higher capital risk weighted factor for the big banks,making the capital regulatory system more scientific and reasonable.Finally,this paper puts forward some policy suggestions from three aspects:improving the bank capital adequacy ratio,optimizing the structure of the bank loan and the differentiation of the bank.Banks can improve the capital.adequacy ratio by reducing the high risk weighted assets,investing high return industry and so on;And whether its capital adequacy ratio to adjust the credit structure to avoid risk;Regulatory authorities have to manage bank capital adequacy ratio differently according to the size of the bank,the qualifications of the bank.