Research On The Influence Of On-and Off-Balance-Sheet Leverage On The Stability Of Commercial Banks

If the 2008 financial crisis made the Basel Committee aware of the important impact of leverage on the individual stability of banks,then the supply-side structural reforms that implemented de-leverage at this stage made it easier for Chinese regulators to recognize that bank leverage does not occur.A key role in systemic financial risk.In the post-crisis period,China's financial market has been continuously opened,financial products have been innovated,and the scale of various businesses has been fully increased.It is also accompanied by the gradual deepening of bank stability research and the precise subdivision of different leverage attributes.However,the effect of these differentiated levers on the individual stability of commercial banks and the stability of the banking system has very important research significance.In view of this,this paper comprehensively selects the impact of internal and external leverage on bank stability as the research object,andimplements differentiated regulatory measures and develops effective prevention mechanisms for research purposes.The overall research ideas of this paper are centered on the following main lines of logic: Firstly,the research dynamics of the impact of bank leverage on its stability at home and abroad are reviewed and summarized,and the research objects of the full text are determined,and then the relevant theories are summarized.And summarizing,as the starting point of the theoretical basis and empirical research of this paper;secondly,based on the theoretical basis,quantitative measure and current situation description,comprehensively select the actual operational data of 14 listed commercial banks from 2008 to 2017,and construct panel regression The model is used to empirically test the effect of internal and external leverage on the bank's individual stability and its system stability.Finally,based on the regression conclusions,through comparative analysis,it proposes targeted policy recommendations,thereby enriching the impact of bank stability.This paper combines normative analysis and empirical analysis to draw the following conclusions:(1)Improving the leverage level of commercial banks not only helps to enhance the stability of individual banks,but also helps to reduce the spillover effects of their own triggering risks and the banking system in crisis.(2)Financial leverage means that the rise of internal leverage will reduce the stability of commercial banks themselves,and taking into account this factor will increase the spillover effect of individual banks and the banking system in the event of a crisis,so it is easy to cause systemic risks..(3)The leverage of derivatives that is widely used to spread risk is beneficial to mitigate the spillover effects of individual banks and banking systems when risks occur,thereby enhancing the stability of the financial system,but the increase in such leverage is not conducive to banking institutions.Its own stability.(4)In view of the growing scale of off-balance-sheet business,it will inevitably lead to an increase in the leverage of credit commitments.While significantly enhancing the individual stability of banks,it will increase the bank's own risk spillover effects on the banking industry and the banking industry.