The Influence Of Leverage Ratio Regulatory On Efficiency About Commercial Banks In China

Because of the outbreak of financial crisis,the landing of Basel Agreement ? as well as the relevant documents released by the China Banking Regulatory Commission(CBRC)according to the specifics of China,and the future economic working direction as“cutting over capacity,destocking,deleveraging,reducing corporate costs and shoring up weak spots”,which presented by president Xi Jinping on the Central Economic Work Conference in 2016,leverage ratio,as a financial hotspot,has attracted attention of the whole world again.The financial crisis creates considerable loss to the US and to the world,which gives us a wake-up call that it is insufficient by relying on the supervision of capital adequacy ratio only.After realizing that,people add leverage ratio,as a supplement of capital adequacy ratio,into regulatory system in Basel Agreement?,hoping it would achieve the overall supervision and improve the anti-risk ability of financing institutions.Therefore,it is practical and crucial to do the research on the relation between the leverage ratio and banks ' operation efficiency,no matter for the meeting of regulatory requirements or for the improvement of capital safety of banks.Firstly,the author reads a large number of relevant literatures and confirms the research object from both influence factors of bank efficiency and researches on leverage ratio management.At the same time,she resents the theoretical basis of capital supervision and the reasons of high leverage ratio in financial crisis.Combining the relevant theories of bank efficiency,the author also concludes the calculating method of commercial bank efficiency and chooses random frontier method to calculate bank efficiency.Secondly,combining the related data and comparing them with both international situations and domestic historical information,the author analyzes the present leverage ratio situation of China,and gets the result that the ratio in China has met the supervision requirement and has no pressure in short time.Based on status analysis,she presents the ways leverage ratio affecting commercial bank efficiency from business image,financial regulation measures and the calculation formula for the leverage ratio.Finally,the author obtains the bank efficiency according to 2009-2016 stochastic frontier model of input and output of 16 selected sample banks,and works out the acceleration of bank efficiency by leverage ratio.However,differences exist in incidence of different types of banks.Besides,the author generally presents the relations between the ration and triple principles of commercial banks with simple financial indexmethod.The innovation points of this essay are follows : Firstly,the author takes the leverage ratio into consideration as the factor influencing the efficiency of commercial banks,which follows the hot topic,and combines the latest bank data to analyze whether the leverage ratio reach the standard or not and How good is the standard.In addition,the author calculates the efficiency of commercial banks with Stochastic Frontier Approach and makes researches on the relations between leverage ratio and all financial index.All of these enrich the existing researches.Several suggestions are made from both regulatory perspective and banks themselves according above theoretical and empirical results.As for supervision departments,idea of combining micro-prudential and macro-prudential management should be established.Relevant personnel should supervise from both part and keep away the risks from both.And the leverage ratio and capital adequacy ratio supervision,because of the advantages of each other,should form the parallel regulation to prevent one sidedness.As for banks themselves,they need strengthen the information disclosure system,establish an internal risk management committee and accelerate financial innovation to tap the potential for profit.