A Study On The Impact Of Capital Buffering On Credit Behavior In China 's Banks

The financial crisis of 2008, exposed the drawbacks of the Basel Ⅱ, especially the underlying pro-cyclical characteristics of which was questioned by people. Then many scholars found that the capital regulation has a pro-cyclical characteristic, exacerbating the pro-cyclical financial system, and the pro-cyclical of financial system is an important factor of the financial crisis. After the reflection of the pro-cyclical financial system and the Basel Ⅱ, the Basel committee launched the Basel Ⅲ, in which introduced the capital buffer, which is a counter-cyclical adjust tool to release the pro-cyclical characteristic of bank credit and reducing its negative effect on economic fluctuations. By the time The China banking regulatory commission also issued a new method of capital management, which puts forward new requirements to our country commercial bank’s capital, and also include the capital buffers in counter-cyclical capital regulatory framework..Along with the implementation of the countercyclical capital buffer, the study of capital buffers gradually increased, but in general, most of them are capital buffers periodically in the process of the banking system, and the effects on capital cushions Banks credit behavior studies are quite few. In this paper, on the basis of reviewing related literature, bank credit behavior and its characteristic is analyzed in the first place, and introduces the meaning of bank credit pro-cyclical, and analysis the pushing of bank credit pro-cyclical from multiple perspectives; Secondly, define the concept of capital buffers, and introduce the Basel Ⅲ about capital buffers; Then from the money supply, information asymmetry, regulatory capital and monetary policy, such as Angle analysis the influence of bank credit capital buffers. In empirical research part in this paper, on the basis of the scholars at home and abroad for reference, the empirical model, constructs our country the capital buffer adjustment model of listed commercial Banks and credit behavior influence model, discusses the periodic bank capital buffers and its impact on credit. The empirical results show that the listed commercial Banks in China’s capital buffers has significant inverse periodic characteristic, and capital buffers to adjust to bank credit expansion has significant negative effects, and also to a certain extent, to strengthen the impact of monetary policy on bank credit, but under the action of the economic cycle, the credit behavior of listed commercial Banks in China still present pro-cyclical. And in view of our country bank credit is still present pro-cyclical behavior, regulators need to further improve the countercyclical capital buffer mechanism; The central bank must pay attention to the coordination of monetary policy and regulatory policy, in order to achieve the expected effect of policy; And commercial Banks should pay attention to improve its financing way, carry out diversified business.