A Study On The Influence Of Capital Adequacy Ratio On Bank Profitability

In 2008,the financial crisis caused by the US subprime mortgage crisis spread rapidly in the world,so that some large investment banks suffered devastating impact,but also seriously interfere with many countries in the financial system.The financial crisis fully exposed the existence of the financial institutions of the business risks and regulatory mechanisms exist.The impact and destruction of the subprime mortgage crisis makes the effective supervision of bank capital become the most urgent need for the healthy operation of the financial industry,capital adequacy has received widespread attention as an important indicator of the ability of banks to measure risk.Basel Committee and China's banking regulators have issued a related agreement or regulations,more and more attention to the supervision of bank capital.Under the current strict capital regulatory requirements,it is of great significance to study the impact of capital adequacy ratio on the profitability of banks under the combination of theoretical analysis and empirical research,both for China's financial supervision and commercial banks.In this paper,16 A-share listed commercial banks in China from 2008 to 2015 the relevant data as a sample,on the basis of summarizing the contents of the existing literatures,this paper introduces the theory and development of capital adequacy ratio and bank profitability,and briefly analyzes the theoretical mechanism of the influence of capital adequacy ratio on bank profitability.On the basis of the function of capital,the regulation of capital by the regulatory authorities and the current development of commercial banks,this paper presents a 4-point hypothesis.Through the establishment of multiple regression model,the influence of capital adequacy ratio and core capital adequacy ratio on bank profitability is analyzed from two perspectives of sample and classification samples by using stata12.0 software,that is,to verify the assumptions made in this article.The empirical results show that: From the perspective of the whole sample,the capital adequacy ratio and the core capital adequacy ratio have a positive impact on the profitability of the listed banks and have a significant impact.From the perspective of classification,capital adequacy ratio and core capital adequacy ratio can significantly improve the profitability of three listed urban banks;The impact of state-owned banks on the profitability of the impact is not significant,the joint-stock banks are also true;However,through comparative analysis,it is found that the capital adequacy ratio has a significant effect on the profitability of joint-stock banks than the state-owned banks.Finally,based on the empirical analysis results and the present situation of the development of listed commercial banks in China,some suggestions are put forward for the development of China's banking regulatory authorities,state-owned banks,joint-stock banks and urban commercial banks...