The Research Of Capital Constrain On The Efficiency Of Commercial Banks

Commercial bank efficiency is important index of measuring business operations and thefunction degree,is the comprehensive reflection of the input-output ability and the ability ofsustainable development.The fficiency not only affect the social financial resource’sdisposition, also affected the conduction of financial economic policies. With the financialglobalization and economic integration process and the entery of foreign Banks, our countrycommercial banks management of internal and external environment has greatly changed,theCommercial banks of our country is facing new opportunities and challenges. In order toreduce the risk of commercial bank, and the huge economic turbulence because of financialinstitutions collapse, regulators also constantly strengthen the commercial bank capitalconstraint, especially put forward standards capital adequacy regulatory for commercialbanks.From the Basel accord of1988to the birth of2010’s Basel accord,supervisiondepartment put foward more and more strict supervisions,it will produce a significant impacton the commercial bank management. It is inevitable all of this has important influence on thefficiency of the commercial bank. Faceing the new business environment and changingregulatory requirements, studying how the capital constraints will produce effcct on theefficiency of the commercial Banks has the important theoretical and practical significance.How better to adapt to the new changes, how to further improve efficiency, constantlyimprove their own competitiveness, and realize the sustainable development, it is needcontinuous exploration and research.This paper first use DEA model to measure our country’s12commercial bankefficiency, it shows that our country commercial bank’s overall technical efficiency increasedyear by year, among them the efficiency of the joint stock commercial Banks efficiency wassignificantly higher than the range of state-owned Banks.In addition, joint stock commercialBanks technical efficiency higher than state-owned commercial Banks and be in scaleefficiency stage an,but state-owned commercial Banks in scale efficiency degressive. Then,according to the Basel capital accord to the supervision of the commercial bank, the paperfrom two aspects of external constraints and internal constrained to research. Choosing theexternal and internal constraine of five variables–CAR、CDB）、LQ、BBL、RAROC–toanalyse how the capital constraint’s influence on12listed commercial banks efficiency.The empirical results show that CAR、BBL、 RAROC have Positive and significant influence riskon commercial Banks efficiency, but CDB、LQ have no significant influenceto commercialBanks.Finally, according to the empirical results, and puts forward relevant policy Suggestions:Improve our country commercial banks capital adequacy ratio, Strengthen capitalmanagement and enhance core capital proportion;strengthen business bank economic capitalof measurement and risk control.Based on RAROC as the core business economic capitalmanagement and Strengthen the commercial Banks internal capital constraints, breakthroughcapital constraints of bottleneck. Besides, speed up transformation of commercial Banks andfinancial innovations, Increase the proportion of the intermediate services and seek new profitgrowth point so as fundamentally improve the competitiveness of the commercial Banks andefficiency.