An Analysis Of Bank' Risk-taking Behavior Under The Capital Regulation Standards

Actually,Financial supervision is along with the financial crisis,financial regulation primarily prevent the financial crisis.Some people have the image of the relationship between "cat and mouse".The purpose of the bank capital regulation is to establish the capital constraints for the core business growth and resource allocation,to make the realization of benefits and risks of the growth mechanism for coordinaiton,to creat healthy development of the modern banking system.The establishment of 1998 Basel Capital Accord and 2004 new capital regulation have became the international supervision standard. With the international financial crisis in 2008, the context of Baselâ…¢framework has established in November 2010.Industrial and Construction Bank of China, Commercial Bank of China, Bank of China, has reform and list of shares in 2007. The Agricultural Bank of China, as the last state-owned bank has listed in July 2010. Corporate governance and capital structure of banks have been significantly improved, but the mechanism of banking system is still restructured, and business profit model is still explored to perfect. This text try to study the Bank'Risk-taking Behavior under the Capital Regulation Standards,and try to put forward some suggestions about the bank business business model, the effectiveness of capital regulation and other issues.This theoretical analysis is through the use of Thomas D.Jeitschko and Skin Dong Jeung (2005) model,option pricing model, the deposit insurance agency theory ,try to analyse bank'risk-taking behavior under the capital regulation standards from the creditors, shareholders, managers of the three regulatory capital perspectiveThe empirical analysis listed on the data about eleven commercial banks in china from 2004 to 2010. This text primarily use the equations model of Shrieves and Dahl (1992) and two stage least squares method.Firstly,this text try to define the regulatory pressure, the rate of change of capital, bank risk, bank profitability and a series of variables.Secondlly,this text will analysis bank capital adequacy ratio and the relationship between bank risk and bank captial. By comparing the 2008 cut-off point for the regulatory capital impact of differences in bank risk,we can sum up that when facing up the new domestic and international environment, China's commercial bank capital and risk are negatively correlated, capital regulatory reduce bank risk preference behavior.