Interbank Asset,Capital Regulation And Systemic Risk Of Commercial Banks

Preventing and resolving systemic risks is an inevitable requirement for maintaining national financial security and a necessary condition for high-quality economic development in China.However,in recent years,some phenomena in China’s financial market have begun to arouse the vigilance of regulatory authorities,especially the imbalance in the funding structure of the banking system.Some commercial banks have alienated interbank business as a shadow arbitrage tool,in order to achieve the goal of avoiding regulation and pursuing profits.This has led to the increase in the actual credit scale and leverage ratio of the banking system,with potential systemic risks looming from time to time.Although China’s financial regulatory system is gradually improving,the macro prudential regulatory system is gradually improving,and the introduction of various financial regulatory policies and the development and improvement of regulatory tools have effectively curbed the shadow banking behavior of commercial banks,due to the constant existence of opportunities for banks to pursue interests,the regulatory arbitrage actions of commercial banks in the future will not stop,It can be said that the regulatory arbitrage behavior of banks and the improvement of the financial regulatory system are a process of mutual gaming.Based on the regulatory arbitrage approach of interbank assets,this article explores the role of capital regulation in order to provide countermeasures and suggestions for systemic risk prevention,which has certain practical significance.Based on the quarterly data of 16 A-share listed banks from 2013 to 2020,this thesis explores the internal relationship between interbank assets,capital regulation,and bank systemic risks.The research finds that: Firstly,there are significant differences in the systemic risks of commercial banks with different attributes,which are listed in the order from large to small: urban commercial banks,joint-stock banks,state-owned commercial banks;The expansion of interbank assets has a significant positive effect on the assumption of systemic risks in banks,with the most significant impact of repurchase of financial assets;Secondly,through the analysis of intermediary effects,it is found that the expansion of interbank asset will increase the leverage ratio and capital mismatch gap of banks,thereby increasing the systemic risks bearing of banks;In addition,the impact of capital regulation on systemic risks presents a “U-shaped” effect,that is,within a certain threshold range,capital regulation can significantly inhibit the systemic risk of banks,and beyond this threshold,capital regulation will have a pulling effect on the systemic risk of banks;Based on the above phenomenon,this article conducts a further exploration from the perspective of the regulatory effect of capital regulation.It is found that the cross coefficient between capital regulation and interbank assets is significantly negative,indicating that capital regulation can inhibit the positive effect of interbank assets on systemic risk,and from the perspective of the inhibitory effect,other banks other than the top five state-owned banks are more significant.We propose policy recommendations such as establishing a risk early warning system,standardizing interbank innovative business,and implementing appropriate and targeted capital regulation,especially focusing on strengthening capital regulation for joint-stock banks and urban commercial banks.