Research On The Relationship Between Capital Adequacy Ratio And Efficiency Of China Listed Commercial Banks

Banking is the main sector of the financial industry of China, it concerns the whole national economy. Whether banking can maintain a stable and efficient operation will have a direct impact on the development of the financial sector. To be the embodies of bank’s competition, efficiency determines the development of the banks. The level of efficiency of commercial banks directly effects the social resource allocation, and China’s economic development, Therefore commercial banks efficiency problem research has great significance. For the second reason, Capital adequacy ratio is an important indicator for regulators regulating commercial banks, it is necessary and having practical significance to research if capital adequacy ratio can affect the efficiency of commercial banks. The article researches the relationship of capital adequacy ratio and efficiency of China listed commercial banks, and it explains the specific reasons for the relationship.This paper takes capital adequacy ratio of commercial banks and efficiency theory as the theory of supporting, Draw lessons from the domestic and foreign literature research method. According to the specific data of listed banks in China build an empirical analysis. Choose14listed commercial banks in2007-2011as an object for study. Using data envelopment analysis (DEA) for determine the efficiency of commercial banks. Establish a mixing panel data model for regression analysis. Study the relationship between the commercial banks’capital adequacy ratio and efficiency. The result shows that there is a positive correlation between the commercial banks’capital adequacy ratio and efficiency. On the basis of this, put forward reasonable proposals for enhancing the regulation level of the capital adequacy ratio of commercial banks in China. Make some useful exploration for the development and reform of the bank capital adequacy supervision in China and the coordination problems between bank stability and efficiency of the listed banks.