The Research On The Optimization Of Capital Structure Of China’s Listed Commercial Banks

The capital structure is the basement of a bank to survive, to develop and to expand, and the quality is directly related to the ability of defending the risks. The optimization of the capital structure of commercial banks is a hot topic both in the theory and practice circle. From a regulatory perspective, the capital structure of commercial has changed after the “capital management” released. These changes give the research of “optimization of commercial bank capital structure “a new meaning. Based on the new “capital management”, this essay choose 16 listed banks which occupied China’s banking instruments 60% assets to study on the optimization of capital structure of listed banks in China.This essay firstly reviews the three capital structure developing phases of our commercial banks, and explores the characteristics in each phase. The research find that, with the time passing by, the capital adequacy level become higher and the capital structure is more reasonable. Based on the new regulatory standards, the paper analyze the capital structure from 3 sides which are Tier 1 capital, Tier 2 capital and capital adequacy level. The research find that in the term of capital adequacy, all banks meet the regulatory standards, but also have the pressure to replenish capital; in the term of Tier 1 capital, the listed commercial bank’s tier 1 capital occupies the total capital of the vast majority proportion; in the term of tier 2 capital, tier 2 capital tool is relatively scarce and the tier 2 capital tools which meet the new regulatory capital standards are almost zero. Besides, the paper takes assets, profitability, traditional business, risks, capital index and exogenous financing as independent variables, analyze the influences to capital structure using panel data. The results show that, asset, profitability, traditional business, capital index and exogenous financing have significant influence on the capital adequacy rate, but the risk has not. In the end, based on the findings, the paper has some suggestions for the optimization of the capital structure through the sides of capital adequacy, tier 1 capital and tier 2 capital.