The Research On The Impact Of Capital Buffer On Credit Behavior Of Chinese City Commercial Banks

The outbreak of the financial crisis in 2008 was a serious threat to the global economy,the original capital supervision system strengthened the pro-cyclical nature of the financial system and exacerbated the fluctuations of economics.In order to reduce the adverse effects of the bank's cyclical nature on the economy,The Basel Committee promulgated the Basel Agreement ? to Implement the macro prudential supervision.The countercyclical capital buffer mechanism was introduced to reduce the pro-cyclical effect of bank credit.In 2011,China's regulatory agencies put the capital buffer mechanism into the capital regulatory framework,the banks are required to provide capital retention buffers and in particular situation,the banks should provide the counter cyclical capital buffers.At present,the study of capital buffers is mostly about its cyclical problems,the state-owned banks and large joint-stock banks would be the research objects in normal.This paper uses theoretical induction,comparative analysis and empirical analysis to study the impact of capital buffer mechanism on the credit behavior of urban commercial banks in China from a new perspective.On the basis of reviewing the relevant literatures,firstly this paper introduces the relevant regulations on capital buffers and the current status of city commercial banks' capital buffers,then the paper analyzed the present situation of capital and supplementary sources.Secondly,this paper analyzed the relevant theories of capital cushion and credit behavior and puts forward the hypothesis of this article combining the particularity of city commercial banks.Then,according to the relevant data of 75 city commercial banks from 2004 to 2016,the empirical research was carried out to verify the hypothesis presented in this paper.The following conclusions are obtained in this paper:(1)The pro-cyclical nature of credit in city commercial banks didn't show a clear pattern,and the capital cushion mechanism can strengthen the credit reverse cycle effect.(2)The channels which increasing capital buffers are effective in the city commercial banks,and capital buffers have the counter-cyclical nature(3)the capital buffer has a kind of nonlinear influence on city commercial banks' credit behavior.(4)The competition degree of regional financial industry can strengthen the credit restraint effect of capital buffer on city commercial banks.Finally,according to the relevant conclusions of this paper,put forward relevant policy recommendations.