| After the international financial crisis in 2008,almost each country realized that relying merely on micro-prudential supervision was inadequate.The stability of a single financial institution was not enough to maintain the stability of the financial system as a whole,so regulators paid more attention to macro-prudential supervision.In recent years,China has continuously improved its macro-prudential regulatory framework,for the sake of conducting supervision from a macro perspective,identifying and preventing systemic financial risks effectively,and better achieved the overall goal of financial supervision.With the continuous development of China’s macro-prudential supervision,its substantial impact on the profitability of China’s commercial banks has attracted much attention.There are few studies on the impact of macro-prudential supervision on banks in China up to now,which are mainly based on the bank’s risk perspective and have not yet reached a unified conclusion.Consequently,this article empirically analyzes the impact of macro-prudential supervision on the profitability of Chinese commercial banks,with a view to provide reference about ameliorating macro-prudential supervision for policy makers and guidance about improving long-term profitability for bank operators.Combining theoretical and empirical research methods,this paper uses panel data of 31 listed commercial banks in China from 2010 to 2018 as research samples.The Capital Adequacy Ratio,Leverage ratio,Non-Performing Loan Ratio,Liquidity Ratio and Interbank Liabilities Ratio are used as representative indicators of macro-prudential supervision.Firstly,by using the system GMM estimation method,the research has tried to figure out the influence of macro-prudential supervision tools on the profitability of sample commercial banks.Furthermore,the research tried to attain a comprehensive indicator of supervision tools by the principal component analysis method,and studied the overall impact of China’s macro-prudential supervision on banks’ profitability.The research results show that within the sample range selected in this paper,the five selected macro-prudential supervision indicators are negatively related to the profitability of commercial banks as a whole.Specifically,the macro-prudential supervision on the Capital Adequacy Ratio,Liquidity Ratio and Interbank Liabilities Ratio have both reduced banks’ profitability,also the regulation of Non-Performing Loan Ratio has improved banks’ profitability.In general,macro-prudential supervision is negatively related to the profitability of China’s commercial banks.From 2010 to 2015,the weakening effect of macro-prudential supervision on banks’ profitability was relatively obvious,and itsweakening effect was reduced after 2016.Taking the conclusions of this research into account,specific suggestions are made to improve supervision and increase long-term profitability of commercial banks. |
