Analysis Of China Commercial Banks' Capital Structure From The Aspact Of Risk Aversion

Commercial banks'capital structure plays an important role in realizing their financial objectives and stable management.Not only does it determine commercial banks'value and cost of floatation, but also the ability to resist and puncture risks. The commercial banks' developing history in Western countries proves that effective structural management of capital not only helps them to adapt to regulatory requirements in an active manner and implement effectively capital adequacy management, but can avoid financial risks, so as to give support to the overall strategic development targets through capital planning, and to maximize their market value.With an increasingly flawless regulation of commercial banks, especially the deepening awareness of risks, there have been a series of transformation and optimization in the capital structure of commercial banks in China. However, compared with the large international banks, many defects still exist in the capital structure of Chinese commercials. There is still a relatively long way to go before we establish a modern regulation system of commercial banks so as to realize the optimizing targets of achieving the largest value of commercial banks. The Southeast Asian financial crisis and the global financial crisis caused by the Subprime mortgage disputes in the US have already rung the alarm bell, making us more aware of the great potential risks of commercial banks. Therefore, we should study the capital structure of commercial banks and its optimization from the special aspect of risk evading, better improve the capital structure of commercial banks from institutional and technological aspects, so as to establish a managerial system of capital structure based on market-oriented, enhance the core competency and the ability to resist risk of our commercial banks, ensuring China's commercial banks would stay still and achieve a good development in the fierce competition between banks in the future,under the guidance of monetary and financial theory, capital structure theory, theory of modern enterprises and relevant economic theories, and with the current capital structure of commercial banks as the reference frame, this paper, sticking to the principal of combining economy and finance, theory and practice, history and development, learning and innovation, and adopting research methods of combining empirical analysis and theoretical analysis, inductive and deductive, qualitative analysis and quantitative analysis, and normative analysis and comparative analysis, gives an in-dept study on the capital structure and its optimization of Chinese commercial banks, from the theoretical, historical, empirical, drawing, perspective and policy operability points of view.Based on the "three characters" of commercial banks and with the large commercial banks and share-holding commercial banks as research objective, this paper researches the capital structure and its optimization of commercial banks from the special angle of risk evading. Chapter1is an introduction. In Chapter2, we discuss the capital structure development history of commercial banks and analyze the theoretic relativity of capital structure and risk evading in commercial banks on the basis of defining risk evading and capital concept of commercial banks, and reviewing theoretic development of capital theory. In Chapter3we sum up the present situation and distribution of commercial bank's risks through an analysis of security, liquidity and profitability of commercial banks; we also, through analyzing the present situation and risk evading of core capital structure and subsidiary capital structure, sum up the capital structure features of Chinese commercial banks at the present stage, and put forward the viewpoint that there is an internal link between commercial banks'capital structure and risk evading. In Chapters Fourth, Five and Six, we, based on the principals of security, liquidity and profitability of commercial banks, give a quantitative analysis of the link between capital structure and risk evading by adopting calculating statistics. In affirming the important links between risk evading and capital analysis of commercial banks, we detect the key factors that might lead to risks in the capital structure of Chinese commercial banks, and emphasize the importance and urgency to better the capital structure of commercial banks. In Chapter Seventh, we, under the framework of "three characters" principal of commercial banks and giving full consideration to the interrelation between security, liquidity and profitability and there interfeeding effects on risk evading behavior of commercial banks, establish the linking models of capital structure and risk evading for commercial banks, which is a proof of the analysis results in Chapters Four, Five and Six. Meanwhile, we point out the feature that the responding coefficient between capital structure and risk evading changes with the time. In Chapter Eight, on the basis of consideration of the present capital structures of commercial banks in countries with mature market economy including the US, Japan and ROK, we establish a Optimal economic model of capital structure by adopting the economic theory, and point out the practical choice to realize the target of optimizing capital structure. And on that basis, we propose the strategy and realizing method for the optimization of capital structures in Chinese commercial banks. In Chapter Nine, we focus on the countermeasures for the difficulties realizing in realizing optimized capital structure, including optimized financing structure, stockholders'right structure and external environment.