Study On The Impact Of Capital Adequacy Ratio On Operational Performance Of China Listed Commercial Banks

With the introduction of the?Basel III?in 2010,the?capital management measures for commercial banks?which is the Chinese version of Basel ? were promulgated in 2013,what is a stricter regulatory standard for capital requirements of commercial banks has been put forward.Capital is the blood of the bank,how will the performance of commercial banks be affected in the background of the stricter capital regulation.On the other hand,which kind of evaluation method can reflect its value more comprehensively and truthfully with the management performance evaluation method has developed so far.The purpose of this paper is to find a suitable method for evaluating the performance of commercial banks through literature review,then,I will analyzes the relationship between the capital adequacy ratio and business performance through theoretical and empirical research.And contribute some suggestions.First of all,this paper is defining the business performance of a commercial bank and the entropy method is used to evaluate the performance of commercial banks based on the research of the predecessors.This paper selects the annual report data of 14 listed commercial banks with relatively complete domestic data from 2008 to 2016 as the research samples in order to ensure the reliability of data and the referability of research results.Synthesis of operating performance index by entropy weight method,then we conduct a regression analysis of the performance index and capital adequacy ratio and core capital adequacy ratio of the listed commercial banks,and add the two power of the explanatory variable to verify that the impact of capital adequacy ratio on business performance is parabolic.Then the influence degree of the capital adequacy ratio on the performance of non-state-owned banks is greater than the influence degree on the performance of the state-owned banks by setting up whether the capital adequacy ratio is given to the virtual variables for the state-owned banks.And set up the assets scale,GDP growth rate,the first major shareholder ratio,the ratio of risk weighted assets to the total assets,and the ratio of the reserve coverage of nonperforming loans as the control variables in order to make the results of regression analysis more realistic.The empirical results show that the capital adequacy ratio of listed commercial banks has a significant positive impact on business performance,but the effect is not linear.In addition,there is a negative correlation between the size of bank assets and the ratio of weighted risk assets to total assets,the proportion of the largest shareholder and the provision coverage of non-performing assets are positively related to business performance,the correlation between GDP growth rate and business performance can not be drawn due to the GDP growth rate index is derived from the first order difference value in the inspection process.Finally,the results are explained and give some suggestions.