The Impact Of Capital Regulation On Credit Structure Of China's Commercial Banks

The healthy development of the banking is related to the normal operation of the national economy.Its security is the most important concern of all parties.But since 1980,the global banking industry is facing crises which take place one after another.In 1988,the first version of the Basel Accord was introduced,and since then the banking has been more standardized.However,contrary to expectations,as the first demonstration of the Basel Accord,the United States and Japan were in recession in the 90s.Scholars have tried to study this phenomenon,found that on the one hand,the minimum capital requirements of the Basel Accord can improve the security of the banking to a certain extent;on the other hand,in order to meet the requirements to avoid punishment,banks had to reduce credit scale substantially,which led to the overall economic shrinking.The financial crisis in 2008 spread a wide range of destructive,making the Basel Committee stepped up the pace of reform,and ultimately introduced the third edition of the Basel Agreement,which raised a number of indicators' standard value,and set up countercyclical buffer capital to cope with the more and more serious pro-cyclicality.China is also actively involved in the supervision of banks.In 2004 and 2012,China issued landmark documents on bank's capital adequacy ratio and other indicators with international standards.Based on the important capital regulatory indicators in financial supervision,this paper studies the impact of capital regulation on the credit structure of commercial banks in the light of the practical data of commercial banks and the operation of national economy,using models to analyze the panel data of 16 listed banks from 2009 to 2015,to test empirically the impact of capital supervision on bank credit behavior from the total loan growth rate,the proportion of corporate loans,the proportion of credit loans,concentration of loans and other aspects.Then combined with the case of Ping An Bank to check the empirical conclusions,this paper compares the empirical conclusions with the data of Ping An Bank,and finally summarizes conclusions and proposes suggestions.This paper shows that:1.In the impact of capital regulation on commercial banks' total credit,the increase of capital adequacy ratio will make the credit growth rate declined.For banks with relatively sufficient capital,the increase in capital gap will lead to a decline in growth rates,while the capital adequacy ratio of capital-sufficient banks will increase the growth rate.2.In the impact of capital regulation on the proportion of credit structure,the increase of capital adequacy ratio will increase the proportion of corporate loans and credit loans,but the impact is limited.For banks with relatively insufficient capital,the increase in capital gap will lead to decreasing the proportion of corporate loans and the proportion of credit loans.The capital adequacy ratio of capital adequacy banks will increase both.The inconsistency of the performance of the two banks makes the empirical conclusion and theoretical analysis have some differences.3.In the impact of capital regulation on the concentration of loans,the increase of capital adequacy ratio will increase the concentration of loans,with which theoretical analysis is not consistent.The main reason is that capital regulation reduces the overall income of the bank,in order to make up for the loss,banks choose to improve risk preference,increasing the concentration of loans.4.In the case of Ping An Bank,with the actual capital adequacy ratio growth,loan growth rate,the proportion of corporate loans increase.When the capital is relatively insufficient,the proportion of corporate loans,the proportion of credit loans and the concentration of loans are consistent with the empirical results.When the capital is relatively abundant,the loan growth rate is different from the empirical results,probably because of the macroeconomic impact.When capital is sufficient,it is in line with the empirncal results,in addition to the loan growth rate.In the process of our country to promote and implement more stringent capital regulation and combined with the experience and deficiency of Ping An Bank,this paper puts forward the following suggestions aiming at our specific situation:the first is that commercial banks must transform their business model and broaden the channels of capital replenishment by creating new capital instruments.The second is that regulatory authorities should improve the regulatory system.At the same time,they should actively explore financing channels and vigorously develop multi-level capital market.