Research On The Effect Of Capital Adequacy Ratio On The Stability Of Commercial Banks In China

The Chinese stock market crash in 2015 and the current economic malaise of the world,reflect that the finance has a huge influence in a country or even the whole world.Because the indirect finance occupies the main position in the financial market of our country,and the commercial bank is the main body of the indirect financial market.Therefore,the stability of commercial banks is the key to the stability of the financial market.The capital of commercial banks is an important factor in the process of taking risks,absorbing losses,ensuring the interests of customers and maintaining the stability of the banking industry.Sufficient capital of commercial banks can improve their ability to resist risks.Whether the Basel accord or the classic camel rating system,regulation of capital adequacy is an important part of regulation.China's Banking Regulatory Commission was set up in 2003 to promote capital adequacy of China's commercial banks.From the reality of the situation,the overall capital adequacy ratio of China's commercial banks has improved,the amount of capital adequacy standards,the number of banks has also greatly improved.At the same time,China's economic growth is slowing down and the competition in the banking industry is intensifying.Higher demand for the viability of commercial banks has been put forward,and the stability level of commercial banks is facing a test.Whether the capital adequacy ratio has a significant impact on the business stability of China's commercial banks needs further verification.Therefore,this paper mainly studies the relationship between the capital adequacy ratio and the stability of commercial banks.This paper establishes a panel data model through Eviews software.Through the empirical analysis of 15 listed commercial banks related indicators for 10 years,we draw the conclusion of correlation,which is beneficial to verify the relationship between them.