Research On The Relationship Between The Credit Scale And The Listed Banks’ Equity Financing

Due to the impact of the global financial crisis, the Basel agreement and the financialregulatory authorities have increased the minimum capital adequacy requirements. In such aenvironment, Chinese commercial banks need to supplement capital promptly. In recent years,Chinese commercial banks have executed many plans to finance from the stoke market. After thesupplementary of capital, commercial banks will increase the credit scale and then finance again.Such a mode is not conducive to the development of commercial banks themselves. Even it willhurt microscopical economy.Although with the development of economy and the deepening of financial reform, Chinesecommercial banks have made great progress in the credit business and equity financing, but thereare also many problems to solve. Only if the regulatory agencies and commercial banks makeunremitting efforts to create a favorable financial environment, the commercial banks will developwell.In this paper, the listed banks’ credit scale and equity financing are studied, and the relationshipbetween them is analyzed in an empirical method. First of all, the theories about the credit scale areintroduced. Then the commercial banks’ equity financing is discussed. Through the use ofeconometric models, the relationship between the scale of listed banks’ credit and the scale of theirequity financing is analyzed. Finally, the corresponding measures are advised.