Study On Correlation Between Chinese Commercial Banks’ Capital Adequacy Ratio And Operational Performance

With the rapid development of China’s economy, China’s economy will play anincreasingly important role in the world. Financial sector related to the lifeline of thenational economy, but because of domestic capital markets are underdeveloped, banksare still the most important participants is our country’s financial industry. In the waveof globalization, China’s commercial banks will also go abroad to meet the challenge. Atthe same time, our first challenge will be the international financial regulatory standardsand regulatory issues. First of all, it is the regulatory capital requirements of "Basel Ⅲ".In a very long time, China’s commercial banks have a single capital structure, and havemany problems, such as high rate of non-performing assets. As China’s regulatory of thecapital adequacy ratio gradually integrate with the world, China’s commercial banks isbound to face more stringent capital adequacy requirements. But what impactincreasingly high capital adequacy requirements will result in the operating performanceof our commercial banks, not only becomes the focus of academic research, but also alot of troubled commercial bank managers. This paper aims to clarify the relationshipbetween the two empirical studies, and targeted its own proposals for the developmentof China’s commercial banks to make their own modest force.Bank is a special type of corporation, in a very long time there is no uniformdefinition of its operating performance. Based on previous studies, this paper gives thedefinition of the operating performance of the bank and select a large number ofempirical data for the empirical analysis. Facing the problem of the quantification ofoperating performance, scholars from various countries have adopted different researchperspective. Taking the special circumstances that non-financial indicators are verylimited accuracy and convincing into account, finally I decided to use financialindicators to synthesize operating performance index; In the sample selection, paperselected financial disclosure quality is better, more complete historical data of14listedcommercial banks as research subjects, including both large-scale state-owned banks,including the national joint-stock commercial banks and city commercial banks some,more complete range; In the selection of statistical methods, it is necessary to excludethe interference of human factors, but also to be able to handle complex good panel datamodel, so in the process of synthesis of the index of operating performance, we selected a new weighting method which is objective-Entropy method. Then, after the regressionanalysis listing of the capital adequacy ratio and the index of operating performance ofcommercial banks, we found that the capital adequacy ratio of commercial banks has apositive correlation with the operating performance of commercial banks, especially theimprovement of the core capital adequacy ratio can effectively improve the operatingperformance of commercial banks; but the supplementary capital adequacy ratio haslittle effect on the performance of commercial banks, this may be related to the capitalstructure of China’s commercial banks. This result also shows that enlargement ofcapital adequacy ratio and will not cause a decline in the competitiveness of commercialbanks. Finally, how to extend the replenishing channels of commercial banks’ capitaland how to improve the management capacity of commercial banks, this article also putforward some proposals on these problems.