The Study Of Capital Adequacy Rate And Loan Portfolio

Capital adequacy rate reflects the capital position of commercial banks, and itmeasures the capability of banks. It has been widely used as an important supervisedindex by the financial authorities around the world since the Basel Accord comes out.The dissertation firstly reviews the influence of the supervision of capital adequacy tothe credit behavior of commercial banks, and what effects has been transmitted to themacro economy and the whole scale of credit. Besides, the paper expounds theconnotation, the composition and the role of the commercial banks’ capital and statesthe connotation, formula and the provisions of different version of Basel Accord of thecapital adequacy rate.Then, the paper analyzes the recent situations of China’s commercial banks’ capitaladequacy rate in accordance with the Basel Accord Ⅲ and commercial bank capitalregulation, and it finds that nation-wide joint-stock commercial banks have lowercapital adequacy rates than the large state-owned commercial banks and localcommercial banks, and several of the joint-stock commercial banks do not meet the newstandard of2019. Considering the current situations, issuing the new write-down capitalinstrument is a comparably practicable way to supplement the capital and raise thecapital adequacy rate. The paper study the market reactions to the new write-downcapital innovative instrument with the approach of case study, based on the16listedcommercial banks, and find that the issue of the guidelines of China BankingRegulatory Commission did not make the investors chase after the listed commercialbanks except for the listed state-owned commercial banks, since the investors believethey have an advantage in policy levels and they can make experiments issue the newcapital instrument, supplement capital, raise the rates and improve the overall strength.Finally, the paper study the influence of capital adequacy rate to the loancombination of commercial banks based on the existing researches. The paper choosesthe data of2008-2012of the main commercial banks, including state-ownedcommercial banks, joint-stock commercial banks, local city commercial banks and localrural commercial banks as examples and uses credit loan ratio and personal loan ratiostand for loan combination. The empirical study shows that the capital adequacy hassignificantly positive correlation between the capital adequacy and the credit loan rate,and do not have significant correlation between the capital adequacy and the personal loan rate. In addition, the paper uses the local credit index as an outside factor and studythe relationship between the index and the loan combination. The empirical results showthat credit index also has significantly positive correlation between the capital adequacyand the credit loan rate, and has no significant correlation to the personal loan rate.Further, the improvement of local credit environment can intensify the influence of thecapital adequacy rate to the credit loan rate.