The Analysis Of The Effect Of Leverage Ratio On The Performance Of The China's Commercial Banks

As of the end of 2016,China's listed banks(including A shares and H shares)has reached more than 30.China's financial system,the existing listed banks have been listed,there are a large number of unlisted banks and foreign banks.Therefore,the banks in order to adapt to the increasingly fierce market competition,need to continuously improve their business level and quality of service that is to improve the performance of our various commercial banks operating performance level.On the other hand,the outbreak of the financial crisis in 2008 to the world financial system have brought a great impact,resulting in a huge loss.Economists in the study of the reasons for the outbreak of the economic crisis found that high leverage is one of the main reasons,a large number of assets out of the table,the bank's core capital is seriously inadequate,and finally lead to the risk.To this end,the international"Basel ?" added regulatory indicators of leverage,China also joined the regulatory system in 2012,the leverage ratio of this standard.In the bank management,in a certain range of appropriate increase in leverage is conducive to the bank's profitability and its safe development,but if the leverage is too high,will lead to greater growth in debt,and finally the debt pressure will in turn increase the financial Risk even restricting the development of the bank.In order to achieve the safe and stable development of banks,commercial banks need to achieve the performance of the national leverage standards to achieve a reasonable performance,so that you can guarantee the bank security,profitability,liquidity dynamic equilibrium,to achieve business The healthy and stable development of the bank.Therefore,this paper begins with the analysis of the leverage ratio and the business performance of commercial banks,and then selects and uses the relevant data of 30 listed banks from 2013 to 2016,and makes an empirical study on the relationship between bank leverage and operating performance,The conclusion of this paper is obtained,and finally the corresponding suggestions are put forward according to the research results.Specific contents include:The first part of the article is introduction,which mainly summarizes the research background and significance of this article,relevant references at home and abroad,innovations and shortcomings of this article.The second part of the article mainly analyzes the leverage rate of commercial banks.This paper analyzes the stipulation of Basel III and the leverage ratio of commercial banks in China,and makes a comparative analysis on the present situation of the selected sample banks' leverage ratio.Finally,it analyzes the influence of leverage on various aspects of business performance.The third part of the article mainly determines the indicators to measure the performance of commercial banks.In order to construct the rating system of commercial bank performance,the bank performance is divided into four aspects to analyze,including:profitability,security,operational capacity and growth.Among them,the profitability of the selected indicators of the weighted average return on net assets,cost-income ratio and operating profit margins;security indicators selected non-performing loan ratio,capital adequacy ratio and equity multiplier;operational capacity indicators selected asset turnover Rate and deposit and loan ratio;growth indicators selected net profit growth rate,deposit growth rate and loan growth rate.Then,through the factor analysis,the comprehensive score of each sample is obtained every year,and the comprehensive score is used as a measure of the performance of commercial banks.In the fourth part of the article,the sample data are analyzed empirically.Select the 2013 listed bank data samples,the leverage is defined as explanatory variables,the explanatory variables include:the bank's overall performance score,state-owned banks and national joint-stock bank performance score,the city commercial bank performance score.After the correlation test,the regression equation is used to obtain the regression equation.Finally,the significance of the three regression equations is analyzed,and the influence of the leverage ratio on the overall performance of the bank and the city commercial bank is discussed.The fifth part put forward the corresponding recommendations.Aiming at the conclusion of this paper,this paper puts forward some suggestions to improve the leverage ratio of commercial banks and improve the performance level of banks.At the same time pointed out that the need for China to establish a sound capital market and legal environment as the implementation of the protection.