The Strategy Of Chinese Commercial Banks Under The Capital Constraint

The thesis is focused on the study of the strategy of Chinese commercial banks Under the Capital constraint. With increasing strictly capital constraint, the paper contend that the Chinese commercial banks should transform the external capital constraint into an inside constraint to maintain commercial banks sustainable development. Firstly this thesis analyzed the content and capital constraint related theoretical basis. Capital constraint is from not only the regulation requirement of the minimum capital adequacy ratio—external constraint, but also commercial banks in which the limited capital constricts the operational behavior of commercial banks—the inside constraints. Secondly this article inspected the practice of commercial bank and point out that strengthening capital constraint is an inevitable trend. Subsequently, through empirical analysis this article concluded that the lack of capital and capital constraints awareness resulted in the failure in taking advantage of capital complement to solve the shortage of capital, only combining with the other reforms supplementary capital can play a role. Finally this paper analyzed the problems of Chinese commercial banks Under the Capital constraint, and offered the corresponding strategy.The thesis integrated empirical analysis and theoretical analysis in the process of study and primarily analyzed the problems of Chinese commercial banks Under the Capital constraint In the end it reached the following conclusions and recommendations. First, under the capital constraint, the Chinese commercial banks have the following problems: lack of understanding of capital constraints, irrational Capital structure, weak Risk management capability, inadequate capital management capability. These are a serious obstacle for commercial banks to implement capital constraint in process of management. Secondly, in order to solve these problems, commercial banks should change their philosophy, build a long-standing mechanism to supply capital, improve the risk management capabilities and reconstruct capital management system. All of the above will benefit for commercial banks to constrict there own expansion behaviors through the combination of the capital and the risk. Thirdly, the regulatory authorities should raise the level of regulatory capital, while perfect a system of information disclosure to continually strengthening the market discipline mechanism. Government should develop the capital market and establish a social credit system to optimize the macroeconomic environment in which commercial banks exist.