A Study On The Effect Of Capital Adequacy Ratio On Bank Profitability

Based on the theoretical analysis of the relationship between capital adequacy ratio and bank profitability,this paper selects 20 Chinese listed commercial banks as the research sample,and establishes multiple regression model of panel data based on data of relevant indicators of 2006-2016 capital adequacy ratio and profitability by using least square method and Eviews statistical software,respectively from a lag period impact analysis of Chinese listed commercial banks capital adequacy ratio for their profitability from the current.The robustness of the empirical model is tested by multi angle.Through empirical analysis,this paper draws a conclusion:Chinese listed commercial banks capital adequacy ratio has a significant positive impact on their profitability,but the influence of different types of commercial banks,and the situation is different in different time.Based on the above conclusions,this paper puts forward the following suggestions:some commercial banks in China should be appropriate to raise the capital adequacy ratio;regulators should formulate different capital adequacy requirements for different types of commercial banks and capital regulation;four state-owned banks should accelerate the transformation of the business structure,to get rid of the traditional business model relies on the scale of development and earning spreads;the government should accelerate the marketization of interest rates,break the monopoly of state-owned banks,accelerate the pace of reform of state-owned;Chinese commercial banks should strengthen risk management,improve the quality of assets and implement fine management of capital.