Research On The Impact Of China's Leverage Regulation On The Performance Of Commercial Banks

The occurrence of the US financial crisis has made the financial supervisory authorities of various countries aware of the necessity of debt risk prevention.Basel III has returned the leverage ratio index to the financial regulatory authority's tool library,and leverage regulation has become the core capital adequacy ratio regulation.An important addition to the indicator.Since the promulgation of Basel III,the study of the impact of leverage regulation on the performance of commercial banks has become the focus of academic research,but it has not yet formed a unified understanding.Based on the realistic background of China's strengthening of leverage regulation,this paper selects 24 listed commercial banks as research objects,and conducts qualitative analysis,quantitative measurement and empirical verification of its leverage ratio and operation management data from 2007 to 2017,in order to explore the leverage ratio supervision.The impact of commercial banks' business performance,and then explore the countermeasures to optimize the regulation of leverage,and propose relevant countermeasures for commercial banks to better adapt to supervision and improve business performance.In the qualitative analysis part,the study found that the leverage ratio index has the basic characteristics of simple and clear,clear and transparent,risk sensitivity is not significant,and counter-cyclical strength.China's leverage ratio supervision has experienced “leverace-based regulation-based – capital adequacy ratio regulation The regulatory process of leverage marginalization regulation – capital adequacy ratio regulation and leverage ratio regulation is enhanced.The theoretical path of leverage ratio regulation affecting the performance of commercial banks: Leverage regulation affects the performance of commercial banks is not direct,but affects the business performance of commercial banks by affecting the leverage ratio of commercial banks.The theoretical mechanism and logic of leverage ratio regulation affecting commercial banks are: leverage ratio regulation strengthens commercial banks' capital constraints,business expansion strategies are limited;leverage ratio supervision reduces commercial banks' risk appetite,and stable operation level improves;leverage ratio supervision forces commercial banks to change Mode,regulatory influences appear to differentiate.The study finds that the impact of leverage regulation on the performance of commercial banks will be affected by the heterogeneity of commercial banks.For large and medium-sized commercial banks,leverage regulation is conducive to the improvement of their business performance,while for small For commercial banks,leverage regulation will form a negative constraint on their business performance.In the quantitative measurement part,the study found that the leverage ratios of China's stateowned commercial banks,national joint-stock commercial banks,and regional joint-stock commercial banks in 2007-2017 all showed “U-shaped” characteristics of “first decline,then rise”,and all met financial supervision.4% of the agency's requirements.Among the three types of commercial banks,the national joint-stock commercial banks have always had the lowest leverage ratio,far lower than the state-owned commercial banks and regional joint-stock commercial banks,but the gap is shrinking.The article builds a multi-dimensional commercial bank business performance evaluation system that integrates profitability,security,growth,operation and innovation.The entropy weight method is used to measure the business performance of commercial banks in 2007-2017.The performance level of China's state-owned commercial banks is higher than that of national joint-stock commercial banks,while the national joint-stock commercial banks are higher than regional joint-stock commercial banks.This shows that the ownership structure and asset size have an important impact on the business performance of commercial banks.On the empirical evidence level,the article uses the relevant data of 24 listed commercial banks from 2007 to 2017 to construct a panel data regression model.The conclusions show that the impact of leverage regulation on the business performance of commercial banks will appear with the heterogeneity of commercial banks themselves.Influencing differentiation,among them,the regulation of leverage ratio has a positive correlation with the operating performance of state-owned commercial banks and national joint-stock commercial banks,and the positive correlation between the performance of state-owned commercial banks and the regulation of leverage ratio is greater than that of national joint-stock commercial banks;regional shareholding system The leverage ratio regulation of commercial banks is negatively correlated with their business performance,but the negative impact is small.In view of this,the article suggests that the regulatory authorities should adhere to the differentiated supervision strategy of “dancing policy”,adhere to the dynamic supervision strategy “due to time”,improve the actual supervision efficiency,and improve the risk prevention capability;commercial banks should accelerate the transformation of business model.To actively adapt to the requirements of leverage regulation,we must improve the level of asset management to promote the refinement of business risk management,and ultimately achieve a good and fast development.