The Deleverage Financial Problems Of Commercial Banks In China

The U.S. subprime mortgage crisis at the end of 2007 have had impact the U.S. and the whole global economy. After the crisis, the rapid process of deleverage of the banking system leaded to weak the credit intermediary, a credit crunch, amplified the crisis. This financial crisis has triggered a extensive reflection about the national regulatory framework of the existing capital, the Basel Committee on Banking Supervision and other international organizations improved and revised the framework of the Basel II capital regulation in many ways, and added the leverage ratio as a new index for bank capital regulation. In the "Enhanced stability of the banking system (draft) ", the Basel Committee formally introduced leverage ratio as complementary measures. China Banking Regulatory Commission made the same response, that introduced the leverage ratio regulatory mechanism, and adjusted banks leverage regulatory requirements according to the economic situation and risk profile.In the short term, the level of leverage ratio of commercial banks in China is in a safe range, but after the financial crisis, the Chinese interest rate marketing will accelerate the process, the deficiencies between deposit and loan interest rate will be reduced, the large Chinese commercial banks will be more in-depth participate in international competition. They will need to implement a more diversified business strategy. China's banking traditional high-interest rate profit model will difficult to continue. Chinese banking needs to change business models, develop financial innovation, and maintain a reasonable level of leverage ratio to maintain commercial banks'development steady and healthilyBy analyzing the current situation of commercial banks, according to the new requirements of the leverage ratio in" regulatory guidelines of leverage ratio of commercial banks(draft)",we studied the impact factor of the leverage ratio of Chinese commercial banks. Through the 16 listed banks report data of 2006-2009, we used empirical methods of multiple linear regression model to study the factors'significance on the leverage of commercial banks, and speculated commercial banks deleveraging is already in the second stage.Then we made scientific recommendations about adjustment of China's commercial banks' leverage ratio.