Empirical Study Between Prudential Supervision And Chinese Commercial Banks Efficiency

In recent years,the central bank has continuously improved the Macro Prudential Supervision System.The report at the 19 th CPC National Congress clearly indicates that it is necessary to improve the Dual-Pillar regulatory framework of Monetary Policy and Macro Prudential Supervision policy.The Central Bank has abolished the Second Division of Monetary Policy and added the Macro-prudential Authority,which has strengthened the functions of Macro Prudential Supervision.However,the Commercial Bank Efficiency is often influenced by regulatory policies.How Macro Prudential Supervision can not only prevent risks,but also promote the development of the banking industry is particularly important.At present,there are few studies on the relationship between Macro Prudential Supervision and Commercial Bank efficiency.The purpose of this paper is to enrich the research results in this field.Firstly,this paper sorts out the existing literatures from the theoretical channels and research methods.Starting from the relevant theories,this paper makes a theoretical study on the transmission path of Macro Prudential Supervision and its impact on the efficiency of commercial banks.Then,taking the balanced panel data of 28 listed banks in China from 2013 to 2017 as samples,this paper uses panel threshold regression model to empirically test the relationship between capital adequacy ratio,reserve coverage regulation and commercial bank efficiency.It is found that the capital adequacy ratio and reserve coverage ratio exert a positive influence on the banks efficiency in China.The impact of capital adequacy ratio on bank efficiency is not a simple linear relationship,but there is a sudden change in the improvement of bank efficiency.Accordingly,this paper suggests that the regulatory authorities should pay attention to the internal and interactive relationship between the regulatory indicators,improve the fine supervision,and adopt dynamic indicators combined by stages and subregions for some banks.