| The capital adequacy ratio(CAR) of commercial banks refers to the ratio of bank capital and risk weighted assets, and is the nucleus of banking supervision. At the same time of preventing the risk of bank system and ensuring the stability of the banking system operation, however, CAR supervision may also have a negative impact on economic growth. In the case of the asymmetric information and the underdeveloped capital market, in the face of the pressure of CAR supervision, it’s difficult for banks to supplement capital through external financing in a short period of time, thus making banks have to reduce the loan assets which have heavy risk weight. Finally, the reduction of credit affects the economic growth. While, the "Commercial bank’s capital management approach(Trial)" was implemented in 2013 in China, which strengthened the supervision of CAR. Therefore, it is necessary to research the relationship of CAR supervision and bank credit, economic growth in China in order to avoid capital regulation restricting economic development. This paper uses 14 Chinese commercial banks’ data from 2005 to 2014 to build a dynamic panel model, and applies the generalized moment estimation to analysis the relationship between our CAR supervision and bank credit, economic growth. Combining with correlated theories, this paper proves that our banking CAR supervision will affect macroeconomic growth by the credit crunch and the impact of balance sheet channel, bank capital channel and bank credit channel. At last, according to the current economic slowdown in China, this paper studies the problem of our banking CAR supervision, and puts forward reasonable suggestions on CAR supervision system which is suitable for economic growth. |
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