An Empirical Study On The Impact Of Capital Supervision On Commercial Banks' Operating Performance

Commercial banking is the main body of China's financial system.It not only affects the security and stability of the financial system,but also affects the development of the entire national economy.The constant innovation of technology has led to the endless stream of financial innovation and the ever-increasing competition in commercial banking.In the face of financial globalization,commercial banks must have their own business performance in order to have a foothold in the fierce market competition.However,the outbreak of the financial crisis time and time again,makes regulatory supervision of commercial banks become more stringent.In order to prevent financial risks,commercial banks in our country have adopted such measures as divesting non-performing loans,reorganizing assets and listing for stock reform in order to reduce non-performing loans and replenish the capital of commercial banks.At the same time,regulators also released a series of rules and regulations to strengthen the supervision of commercial banks and promote the stable operation o f banks.However,what kind of the impact of the capital regulatory requirements on the commercial banks? Is to improve business performance or lower,in theory,there is no uniform conclusion.Therefore,this article focuses on two aspects of capital supervision and commercial bank operating performance,and studies the relationship between the two.First of all,this article summarizes the relevant research literature at home and abroad.Then,this article introduces the theory related to capital supervis ion and summarizes the evaluation methods of popular business performance.Supported by relevant theories,the annual data of 21 commercial banks in C hina for the period from 2006 to 2016 were selected,and the capital adequacy ratio indicators representing capital supervision and the total assets return ratio index representing commercial bank operating performance were selected as the research variables.Descriptive statistical analysis of it briefly discusses the relationship between capital adequacy rat io and return on total assets.Then,the paper establishes a panel regression model to study the quantitative relationship between the two,and adds the non-performing loan ratio,liquidity ratio,cost-to-income ratio,provision coverage ratio,bank asset size,and 2013 as the regression model.Control variables,such as dummy variables,further analyze relevant factors that affect the business performance of commercial banks.The conclusions of this paper are as follows: Capital adequacy ratio is significa ntly positively correlated with the total return on assets of commercial banks;non-performing loan ratio,provision coverage ratio,bank assets scale and total assets return rate are significantly positively correlated;liquidity ratio,cost-to-income ratio The return on total assets was significantly negatively correlated;after adding the dummy variable of the 2013 year of implementation of the Capital Measures,the results showed that it was negatively correlated with the confidence level of the total return on assets of commercial banks at 10%.Based on the above conclusions,this paper puts forward three proposals to improve the operating performance of commercial banks: improve the regulatory system,implement flexible capital supervision;improve the capital replenishment mechanism to improve capital adequacy ratio;strengthen management and improve profitability.