Empirical Study On The Effect Of Capital Adequacy Ratio Of Chinese Commercial Banks On Banking Efficiency

In recent years,in order to strengthen bank risk supervision and prevent systemic financial risks,China's regulatory agencies have strengthened supervision over the capital adequacy ratio of commercial banks in China.A large number of studies have shown that the increase in the capital adequacy ratio of commercial banks is conducive to reducing the bankruptcy risk of commercial banks,improving the return on assets of banks and promoting the overall efficiency of banks.With opening the“black box” of bank operation,how does the increase in capital adequacy ratio affect the efficiency of commercial banks in the issuance of loans and the overall efficiency of bank operations? Is this effect heterogeneous in different ownership banks?By analyzing the changes of capital adequacy ratio of China's commercial banks from 2008 to 2016,we accurately measure the bank's storage efficiency,lending efficiency and overall efficiency,and analyze the three kinds of efficiency and their distribution.The balance panel data of 36 banks in China from 2008 to 2016 were selected to empirically analyze the impact of capital adequacy ratio on the efficiency of China's commercial banks,efficiency of lending and overall efficiency.Further considering the heterogeneity of bank ownership,the sample is divided into four major state-owned commercial banks and non-four major state-owned commercial banks,respectively analyzing the impact of capital adequacy ratio on its overall efficiency and stage efficiency,and then conducting comparative research.From the comparison of capital adequacy ratio,although the capital adequacy ratio of foreign commercial banks declined year by year in the sample period,it is still higher than domestic commercial banks.With the fluctuation of the capital adequacy ratio of the four major state-owned commercial banks and the fluctuation of the capital adequacy ratio of the non-four major state-owned commercial banks,the capital adequacy ratio of the four major state-owned commercial banks has exceeded that of the non-four major commercial banks by 2015;According to the analysis of measurement results,most commercial banks in China are overall inefficient,but a considerable proportion of commercial banks are efficient in the storage phase or efficient in the lending phase.This indicates that some commercial banks in China can only do certain operations.The efficiency of the stage is difficult to balance the efficiency of storage and lending efficiency.From the analysis of empirical results,the regression results of the whole sample show that the overall improvement of the capital adequacy ratio of commercial banks will significantly promote the overall efficiency and the lending efficiency of commercial banks but have no significant impact on bank storage efficiency.The regression results considering the heterogeneity of ownership show that the changes in the capital adequacy ratio of the four major state-owned commercial banks have no significant impact on the overall efficiency of banks,the efficiency of storage and the efficiency of lending.Based on the heterogeneity of the capital adequacy ratio on the efficiency of different ownership banks,it is proposed that the supervision and management policies of commercial banks should avoid “one size fits all” policy recommendations.On the one hand,non-state-owned commercial banks enhance their bank capital accumulation capacity and improve the overall efficiency of banks;on the other hand,state-owned commercial banks should strengthen asset liquidity management and improve the efficiency of their loan issuance.