Study On The Influence Of Counter-cyclical Regulation On The Efficiency Of Commercial Banks

The United States secondary debt crisis erupted in 2007 which affects the world deeply and comprehensively not just impacts the global financial markets rapidly but also the real economy.That crisis exposed the pro-cyclical of banks.In order to ease pro-cyclicality of banks,the Basel Committee issued the Basel III in 2010,and the new agreement included the concept of counter-cyclical macro-prudential supervision framework.China Banking Regulatory Commission launched a series of counter-cyclical regulations on the basis of the Basel III,and we have formed a macro-prudential supervision framework in our country.The counter-cyclical regulatory framework of china improved regulatory standards primarily in capital structure,capital adequacy ratio,leverage ratio,liquidity risk management and loan loss reserve management,that will effect on the efficiency of commercial Banks.To analyze the relationship between the efficiency of commercial Banks and counter-cyclical regulatory,this article selected a total of 15 commercial Banks in China as the research sample,the first to use DEA model to measure the sample bank total factor productivity.After measuring the efficiency,this article selecting the bank TFP index as dependent variable,capital adequacy ratio,leverage ratio,loan to deposit ratio and loan reserve ratio as the independent variables,and add the relevant control variables to building a random effects model and analyze the influence of each indicator to total factor productivity of commercial Banks.We have come to the conclusions that both the capital adequacy ratios and loan to deposit ratio have a significant negative impact on the efficiency of the banks,besides,the leverage ratio and the loan reserve ratio has positive effect on the efficiency of the banks too,but this effect is not significant.Finally,this article based one the theoretical analysis and empirical analysis,this paper propose that commercial banks can improve TFP by changing the business model and forming more supplementary ways of capital.