Effect Of Capital Buffers On The Allocation Of City Commercial Bank Credit Resources

With the progress of marketization of interest rate,the international enviro nment of financial industry is gradually formed,and our country is facing the pressure of competition from home and abroad.After the outbreak of the finan cial crisis,the "Basel ?" was launched and a counter-cyclical capital buffer mechani sm was introduced by the Committee on the Basel Accord.As the counter-cyclical capital buffer mechanism is common in Chinese banks,and the supervision of banking capital is strengthened by the CBRC,the banking industry in China is facing significantly serious challenges.After the concept of financial eco-enviro nment is proposed,the government has been aware of the huge impact of a re gional financial environment on the capital buffer,and the efficiency of the all ocation of bank credit resources.As such,building a good financial ecological environmen't has become a critical criterion for the record of government achie vements.Therefore,it is of great practical significance to study the relationship between the banking capital buffer and bank credit resource allocation,and the influence of financial ecological environment on different regional banks in China.In recent years,the urban commercial banks are playing the role of more importance in Chinese banking industry,which efficiently solve the capital needs of local enterprises and improve the stability of the local economic.There is a certain amount of urban commercial banks of certain scale in China,which constitute a multi-level competition in China's banking situation together with the state-owned banks and joint-stock commercial banks.Under the ecological environment of rapid economic growth,economic restructuring and deepening of financial reform,the development of city commercial banks will have a significant impact,which also brings the challenges and opportunities.This paper focuses on the urban commercial banks,and discusses the impact of capital buffer on the allocation of bank credit resources from the perspective of financial ecological environment adjustment effect,and further provides reliable suggestions and measures.Based on the relevant literatures,this paper is wrapped of five parts.The first chapter is the introduction,introduces the background of significance of our research,review and summary of literatures of China and abroad,intuitions and methods of research,the structure and arrangement of research,and innovation and characteristics inside the research.The second chapter contains the definition of the concepts and the theoretical basis.In particular,the concepts related to the financial ecological environment,the capital buffer,and the bank credit resources allocation are demonstrated,and the theoretical foundation of them is illustrated.The third chapter consists of the theoretical analysis and the assumptions of our research,which first analyzes the theoretical perspective based on the characteristics of urban commercial banks,and then shows the theoretical results and assumptions of the impact of capital buffer and financial eco-environment on the allocation of bank credit resources.The fourth chapter focuses on the empirical evaluation,where based on 62 urban commercial banks,multiple regression model to test the above hypothesis is constructed,and the robustness test is conducted.And the results are further analysed from the perspective of the nature of property rights and monetary policy.The last chapter concludes the research and provides the suggestions on policies,and points out the shortcomings and future directions of this paper.Our research shows that:(1)There is a significant negative correlation between the capital buffer of city commercial banks and the allocation of bank credit resources,such that the capital buffer of the city commercial banks can effectively suppress the bank credit scale.(2)There is a significant negative correlation between the capital buffer and the financial ecological environment and the allocation of bank credit resources,and the change of financial ecological environment exacerbates the impact of capital buffer on the allocation of bank credit resources.As such,improving the regional financial ecological environment can help the improvement of the efficiency of bank credit resources allocation,and reduce the bank credit risk.(3)The negative correlation between the capital buffer and the allocation of bank credit resources is stronger in the non-state-controlled city commercial banks,and the change of the financial ecological environment in the state-controlled city firms exacerbates the impact of the capital buffer on the allocation of bank credit resources,which indicates that the financial ecological environment causes more impact on state-controlled city firms,and the government will have more intervention.Since general state-controlled commercial banks have larger scales,their capability to mange and avoid risks is stronger.(4)Under the contractionary monetary policy,the change of financial ecological environment exacerbates the impact of capital buffer on the allocation of bank credit resources,and hence,it is helpful to implement the tight monetary policy for the control of the size of bank credit and bank risk.We conclude that the development of urban commercial banks and the ability of risk management are closely related to the regional financial environment.The improvement of regional financial ecological environment will promote the enthusiasm of the banks and the allocation of financial resources will be more balanced.Regulators should strengthen the supervision of the city commercial bank's capital adequacy of the buffer and the scale of bank credit,in order to effectively prevent and control of credit risk.City commercial banks should improve their own operating system,and actively carry out business innovation,timely development of strategic transformation,in order to maintain a unique advantage in external competition.