Research On The Proportionality Of Capital Buffering Of China’s Commercial Bank

After the outbreak of the subprime mortgage crisis,the problems of the prosperous cycles of the financial systems of various countries have been continuously amplified.As the most important part of the financial system of the world,the procyclicality of the capital operation of commercial banks will determine the entire financial system to a large extent.Periodic.At the same time,the world has recognized the importance of capital regulation.Therefore,exploring the procyclicality of bank capital buffers and improving the level of international capital supervision has become one of the most important issues in the world.This paper selects 24 large commercial banks in China as the research object,and uses the dynamic panel data model and adopts the GMM estimation method to empirically study the periodicity of capital buffers of different types of commercial banks.Based on the existing research,the factors affecting the capital buffer,especially the relationship between capital buffer and economic cycle,are analyzed in depth.At the same time,based on the requirements of Basel III for countercyclical excess capital,the countercyclical capital buffer of commercial banks is introduced.Based on the analysis of the parameters proposed by Basel III,the HP filter analysis method is used to study the problem of the capital buffer cycle of commercial banks in China.Based on the above empirical analysis,this paper uses the Industrial and Commercial Bank of China as an analysis case to compare the capital adequacy level of ICBC with the systematic and important banks at home and abroad,and discusses the current state of capital adequacy of Industrial and Commercial Bank of China.At the same time,based on the existing regulatory system,through the calculation of the capital buffer level and the calculation method proposed by Basel III,it is found that the capital buffer of Industrial and Commercial Bank of China does have a procyclical characteristic,and ICBC as a global systemic The important banks will soon face the supervision of the TLAC regulatory system.This paper also estimates the capital adequacy level of ICBC from the perspective of the new rules to be implemented in the future,and proposes the future capital buffer level of ICBC.The above results show that the capital buffer of commercial banks in China is generally procyclical,but the capital buffers of different types of commercial banks have different periodicity.After the introduction of the regulatory framework of Basel III,due to the addition of countercyclical excess capital to commercial banks.Buffering has led to a decline in the procyclicality of commercial banks in recent years.It is suggested that the regulatory authorities should continue to deepen China’s financial market reforms and achieve market-oriented financial reforms;continuously improve the registration system and simplify the issuance of stocks by banks.Procedures,shorten financing time,and provide more convenience to the banking industry in the allocation of resources in the secondary market;continuously introduce highquality foreign rating agencies on the basis of various ratings,and achieve objective ratings on the economic environment and the banking industry,and eliminate information.Asymmetry plays a good supporting role.Based on this,it can also enhance the degree of financial risk identification.At the same time,the regulatory authorities set different capital buffer standards for different types of commercial banks,and establish a dynamic and diversified regulatory framework.Economic variables are incorporated into the risk regulatory framework,We should improve the level of banking risk supervision;China should also introduce relevant policies to encourage commercial banks to reduce the procyclical nature of capital buffers,to expand credit when liquidity is poor,and to retain sufficient funds in the event of economic expansion.The capital buffer level,to achieve a neutral commercial bank capital management strategy,to contribute to the promotion of China’s financial market.