Research On The Impact Of Integrated Management On Chinese Commercial Banks Under The Framework Of Macro Prudential

Integrated management is the main operation mode of global financial institutions,even after the 2008 financial crisis in the United States,based on macroprudential objective,international financial supervision institutions only enhanced supervision and increased restriction of high risk business in the comprehensive management.Since the principle of international financial supervision is more likely to be the unity of safety and efficiency,integrated management can effectively improve the efficiency of commercial banks and provide one-stop financial services for financial consumers.Ever since 21st century,China's commercial banks has accelerated the pace of integrated management,the '12th Five-Year Plan' also proposed to promote the trial replacement of the financial industry' integrated management actively and prudently.Under these circumstances,this paper proposes the research on the impact of integrated management on Chinese commercial banks based on the macroprudential framework.This paper first reviews the relevant literature and theoretical basis of integrated management.After combing the relationship between integrated management and macroprudential management,this article constructs a framework of macroprudential analysis considering the factors of integrated management.Integrated management affects stability and capital adequacy ratio of commercial banks,financial consumer protection,and thereby affects the macroprudential management.In addition,within this paper,the dynamic mechanism of integrated operation of commercial banks has been added to the framework of macroprudential analysis,macroprudential management departments can use the power mechanism to curb the excessive integrated management of commercial banks.The integrated management not only has the function of dispersing the financial risk,but also has the problem of systemic risk accumulation due to operation of high-risk business.This paper analyzes the relationship between the integrated management and systemic risk(stability)based on related theory,puts forward the hypothesis of the existence of U-shaped relationship,and uses the United States data to verify the U-shaped relationship.The empirical results show that the integrated management level of Chinese commercial banks is on the left side of the U curve,and it is concluded that the integrated management of the regional and small and medium banks in not conducive to the improvement of the stability.Based on the relationship of U shape,this paper puts forward improved steps of the integrated management of China's banking industry from the macroprudential perspective.The author reckons that the integrated management has the function of adjusting the capital adequacy ratio in reverse cycle.Based on cycle perspective,this paper analyzes the impact of integrated management on capital adequacy ratio.During the period of economic prosperity,integrated management saves capital through circumvention of supervision,however,due to the rapid expansion of credit,the capital will be consumed by new credit,and at the same time,integrated management also takes some risks,which has a negative effect on capital adequacy ratio.During the period of economic recession,the willingness of commercial banks to lend decreases,and the integrated management can effectively save the capital,which has a positive impact on the capital adequacy ratio.From the whole cycle,there is no significant relationship between integrated management and capital adequacy ratio.The paper uses the data of 60 Commercial Banks in 2010-2015 to support the above theoretical analysis,and it is considered that the relationship is consistent with the inverse cycle regulation of macroprudential management.Integrated operation will also affect the protection of financial consumer rights.By using the matrix analysis method,this paper analyzes the impact of integrated management on financial consumer protection.This paper conducts a qualitative analysis of the influences on financial consumer protection from seven aspects.Overall,the negative impact of the integrated management on the financial consumer protection is greater than the positive impact.Among them,the negative effect of integrated management to the fair trade,information disclosure,dispute settlement and legal guarantees is much larger than the positive effect.Integrated management has a positive role in promoting the development of inclusive finance,and it can improve the scope and the popularization of financial education and knowledge to a certain extent,but it will increase the difficulty of financial education and learning.Moreover,integrated management is beneficial for the regulatory agencies and financial institutions to strengthen the protection of financial consumer rights and interests,and to improve the relevant security mechanisms to a certain extent.If the macroprudential management for systemic risk of integrated management is not concerned with dynamic mechanism of the comprehensive management of commercial banks,it will be ineffective.This paper analyzes the dynamic mechanism of commercial banks' integrated management.Firstly,this paper analyzes the relationship between the integrated management and the operating cost by using Grainger causality test.Secondly,it analyzes the influence of the interaction between the scale of banks and the integrated management to reduce operating costs and improve operating performance;at the same time,the paper analyzes the nonlinear relationship between integrated management and operating performance,and puts forward the different business strategy for commercial banks with different scale and the timing of the integrated management.The specific differentiated paths are shown as following:large state-owned commercial banks accelerating the pace of integrated operation comprehensively,medium-sized commercial banks promoting the integrated management strategy orderly,and regional small banks adhering to professional management.Macroprudential management focuses on the access conditions of commercial banks and how to increase operating cost and reduce operating performance in order to prevent the excessive integrated management when systemic risk increases.This paper puts forward the macroprudential management of commercial banks'integrated management from five aspects.Firstly,based on the U-shaped relationship,the paper puts forward the macroprudential management suggestion according to the characteristics of different stages of integrated management,and proposes to establish a capital buffer of integrated management,which is on the left and bottom side of U shape,to deal with the systemic risk of the right side of U shape.Secondly,it is suggested that the adverse effect of comprehensive management on capital adequacy ratio should be effectively utilized to prevent commercial banks' regulatory arbitrage through integrated management during the economic upward period,and to encourage commercial banks to diversify risks through integrated management in the economic downturn period.Thirdly,this paper proposes to improve the behavior of regulatory mechanisms of financial consumer protection,to require financial institutions to strengthen the risk assessment of financial services related to integrated management,to strengthen data statistics that damage the interests of financial consumers,as a result of integrated management;meantime,the author proposed that the relevant index of the integrated management should be considered into the MPA system of the People's Bank of China.Fourthly,from the macroprudential perspective,this paper raises the comprehensive strategic choice and development path of commercial banks.According to the difference of scale,region,risk management ability and other facts,commercial banks should choose different management,the strategy of commercial banks'integrated management can follow the path as below:mergers and acquisitions to expand the scale of operations,and therefore to promote the integrated management strategy;integrated services following the principles of collaborative priority,increasing difficulty,and strategic cooperation;improved financial licenses to further expand the integrated business;actively broadening channels of capital replenishment.