Research On The Relationship Among Bank Supervision Intensity,Innovation Ability And Business Performance

Commercial banks,as the main participants in financial market activities,are of great significance to the entire financial system for their normal operation and healthy development.In the process of economic development,due to monopolistic competition,asymmetric information and other factors,market failure will inevitably occur,and the increasingly active financial innovation activities will also exacerbate the potential risks of the financial system,in which case it will be necessary Government intervenes.Relative to the spontaneous behavior of the market,supervision as a government intervention is the use of "compulsory power" by the state.In recent years,China's banking regulatory authorities continue to introduce new regulatory rules and systems,and strengthen on-site inspection efforts to impose more severe penalties on non-compliant commercial banks,with a view to achieving the goal of safety and efficiency through enhancing regulatory intensity.As the financial performance of the Bank's daily operating results,how will the performance of commercial banks affect the enhancement of the regulatory intensity?In this context,to discuss the effectiveness of China's banking supervision has a strong practical significance.This paper selects the financial data of 47 commercial banks for the period of 2007-2016,and combines with the banking regulatory information disclosed by the China Banking Regulatory Commission to discuss the dynamic impact of the increase in supervision intensity on the business performance of commercial banks,and examine the mediating effect of the innovation ability of banks in the relationship between the two.The article first defines the main research variables,and sorts out related theories and research status at home and abroad,and conducts a general theoretical analysis of the relationship between bank supervision and business performance;secondly,it has three variables:“regulatory-innovation-performance".Based on the specific analysis of the mechanism of action and the actual situation in China,this paper proposes the research hypothesis.Third,empirical analysis of the panel data is performed by constructing a dynamic model,and the system GMM estimation and mediate effect test are used to examine the implementation strength of different types of regulatory measures.The impact on performance and the intermediary role of banks' ability to innovate.Further,the entire sample bank is divided into different types of sub-samples,and the differences in empirical results are summarized.Finally,the empirical results are summarized and corresponding countermeasures and suggestions are proposed.The main conclusions of this study are as follows:First,the improvement of banking supervisory strength has a significant role in promoting bank operating performance.The three dimensions of bank supervision include pre-launch policy announcements,on-site inspections during events,and enforcement of non-compliance penalties afterwards;Secondly,the increase in supervision intensity shows a deterrent effect on banks' ability to innovate,and banks' innovation ability and business banking performance have a negative effect.Third,bank innovation capacity plays a role in the process of regulatory intensity on bank performance.Fourth,the effect of the increase in regulatory strength on the performance of banks and the mediating effect of banks' innovative ability are different among different types of commercial banks.In general,the role of mediation is more pronounced in small and medium-sized banks,relatively dispersed equity,and joint-stock commercial banks.Based on the above conclusions,the paper proposes corresponding countermeasures and recommendations for the regulatory authorities and the banking institutions themselves:First,give full play to the role of supervision and guidance,promote the stable development of the financial system;explore the arrangements for differentiated supervision and regulations,and improve the effectiveness of bank supervision;Third,strengthen Regulatory incentive effect,stimulate the innovation power of the bank.