Bank Capital Buffer And Risk Adjustment Decisions

Based on the quarter data from2008to2012of14listed commercial banks in our country, this paper has empirically analyzed the behavior of short-term adjustment of bank capital buffer and its risk, analyzing the same and difference of the adjustment behavior between big commercial banks, joint-stock banks and city commercial banks. Results have showed that for all listed commercial banks as a whole, the adjustments of the capital buffer and risk are significantly right correlated, while joint-stock banks’ buffer adjustments are fastest and the mutual relationship between risk adjustment and buffer adjustment is significant; city commercial banks’ risk adjustments are fastest, but the relationship between capital buffer adjustment and risk adjustment is not significant; and the risk adjustments of the big commercial banks are most sensitive to the buffer adjustment but the influence of risk adjustment to buffer adjustment is not significant. The results lead to some predictions to the condition aftermath Chinese BaselⅢ, meanwhile they have some inspirations to the policy making of differential supervision and strengthening of bank risk management.