Research On The Strategy Of The Capital Adequacy Ratio Of The Commercial Banks In China

In 2008 before the outbreak of the international financial crisis,the global economy is in a seemingly good operation situation of uplink interval is actually a crisis undercurrents,financial system exists in serious excess liquidity,all banks expanding credit scale,financial derivative products are excessive and disorderly,the rising price of production factors such as increased systemic risk continue to accumulate,eventually led to the outbreak of the financial crisis and the rapid spread of.After the financial crisis,the financial system has been widely discussed in the world and the lack of financial regulation.Ease of the cycle and the implementation of countercyclical capital buffer has become the consensus of a new round of regulatory reform."Basel III" and China Banking Regulatory Commission issued the "commercial bank capital management approach," proposed the need to ease the cycle and strengthen the reverse cycle regulation.Under the background of the new regulatory reform,it is of practical significance to study the capital adequacy ratio of commercial banks in china.In this paper,firstly,the author summarizes the theoretical basis of the positive cycle,analyzes the causes of the capital adequacy ratio and its influence.Then,this paper analyzes the current situation of the capital adequacy ratio of commercial banks in china.In this paper,we use the panel data of 12 commercial banks in China from 2005 to 2014 to analyze the relationship between China's commercial banks' capital adequacy ratio and economic cycle.The empirical results show that the capital adequacy ratio of commercial banks in China with the economic growth rate between a reverse deposit volatility relationships,capital adequacy ratio decreases with the improvement of the economic growth rate,increases with the slowdown in economic growth.This shows that China's commercial banks and economic growth between the existent of a certain cycle.In the end,this paper puts forward some countermeasures from the perspective of reverse cycle regulation.Suggested that the relevant regulatory agencies from the counter cyclical regulatory strategies such as easing the minimum capital requirement of periodic fluctuation,the establishment of the capital buffer,provision of dynamic provisioning and the strengthening of the leverage to ease the regulatory capital adequacy ratio of commercial banks have a pro cyclical problem.