A Study On The Stability Of Commercial Banks Under The Suitable Leverage Ratio

In January 2015,leverage regulation has officially become one of China’s regulatory indicators.As a new member of China’s regulatory indicators,its related research is of great significance to China’s regulatory authorities and financial institutions.But increasing the leverage ratio of commercial banks can promote the stable and healthy development of commercial banks? How much will the change in the leverage ratio of commercial banks affect the stability of commercial banks? The solution of these problems needs to analyze and confirm the relationship between the leverage ratio and the stability level of commercial banks.Only by solving this problem can we discuss the significance of the increase in leverage ratio and the actual role of the increase in capital supervision requirements.Therefore,the research content of this paper is the influence of the moderate leverage ratio on the stability of commercial banks in China.This article aims to solve the following two problems:(1)whether the increasing in leverage ratio of commercial banks is effective in promoting the stability of commercial banks?(2)What is the appropriate level of leverage regulation? In order to solve the above problems,this paper first collected and collated a large number of relevant research materials and combed them.On the basis of the historical process of the leverage index,the advantages and disadvantages of the leverage index and the capital adequacy index,and the related theories,the paper expounds the inevitable reason why the leverage index has become one of the regulatory indicators.Then introduced the calculation formula of leverage ratio,after that from 2008 to 2017,19 samples of bank data construction panel data were selected,and it was found that there was a significant "inverted U" relationship between the leverage ratio of commercial banks and the stability of commercial banks.According to the threshold autoregressive model,the threshold value was 4.54.Finally,the paper puts forward some suggestions from the aspects of leverage regulation and the operation of commercial banks,so that the leverage ratio of commercial banks can better serve the stability of commercial banks.