Research On Performance Of China's Commercial Banks Based On Leverage Rate Supervision

The financial tsunami in 2008 had a significant impact on the global banking industry.It not only forced the regulators of various countries to readjust their regulatory thinking and issue new regulatory policies,but also made the global Banks aware of the risks in the financial industry.In the background jaw self committee in 2010,the new issued ? "the Basel agreement,the agreement is one of the biggest bright spot is the introduction of the leverage ratio regulation to make up for the lack of capital adequacy ratio index,then the branch into the regulatory system also leverage this measure,this has a significant impact on the performance of commercial banks.It is in this context that the current situation of leverage ratio regulation and its impact on the performance of commercial Banks have attracted a large number of domestic and foreign scholars to study.By combining the domestic and foreign scholar's research methods and the commercial Banks in China is divided into state-owned big row,three types of joint-stock Banks and city commercial Banks,pursuant to the leverage ratio calculation formula of the regulators,the study found that three types of commercial Banks in China leverage all showed a trend of rising in recent years,which has the special status of state-owned large line the highest leverage.This paper USES roe,capital adequacy ratio and loan-to-deposit ratio to represent the profitability,safety and liquidity of Banks,respectively.By studying the above three kinds of data of China's commercial Banks from 2006 to 2017,taking 2011 as the midpoint,the time is divided into two parts: 2006--2011 and 2012--2017.By comparing the two parts before and after,it can be concluded from the intuitive trend chart that the issuance of the regulatory document of leverage ratio in 2011 reduced the overall profitability of China's commercial Banks,improved their safety and worsened their liquidity.The results show that the regulation of leverage ratio makes Banks tend to reduce the lending scale,which has a certain negative impact on the profitability of commercial Banks.In order to meet the requirements of the leverage ratio,commercial Banks must make efforts to improve their security capabilities,which has a positive effect on the security of commercial Banks.The contraction of the credit scale of commercial Banks also has a negative impact on the liquidity of commercial Banks.In the end,based on the analysis of the foregoing,combined with China's national conditions,this paper provides several Suggestions for China's banking authorities and regulators.Second,improve the information disclosure mechanism of the leverage ratio to enhance information transparency and public confidence.Third,actively develop off-balance sheet business and strengthen business innovation;Fourth,expand capital supplement channels and establish a long-term effective capital supplement mechanism.