| The outbreak of each financial crisis will lead to people’s thinking about the risk supervision system. In 2007 by the outbreak of the subprime mortgage crisis caused by the global financial crisis, is following the 1930 s capitalist economy since the great depression the global financial industry suffered a major crisis exposed the banking business activities of procyclicality. In this context, the Basel Committee by the end of 2010 promulgated the Basel III, proposed countercyclical macro prudential regulatory capital, requires the member states according to their own situation as soon as possible, set up in line with their own development of counter cyclical regulatory capital framework. China as a member of the Basel Committee, on the basis of the "Basel III", according to the "main body reference, fully independent" principle, the introduction of a series of regulations, initially set up in line with China’s regulatory development counter cyclical regulatory capital framework.The main purpose of this paper is investigate the inverse cycle new regulatory capital impact on the profitability of the commercial banks in China, and find effective measures to achieve sustainable profitability, in order to achieve the aim of study. In this paper, the theory of inverse combing cycle regulatory capital and profitability of the commercial banks. Based on analysis of introduction to Britain and the United States as the representative of the western banking supervision situation and Countermeasures of supervision, improve the profit strategies; then based on the current situation of the development of China’s inverse cycle regulatory capital rules and the profitability of commercial banks, using empirical analysis of the counter cyclical regulatory capital rules for the profitability of the commercial banks in China.This paper considers the inverse cycle new regulatory capital the main influence is to meet regulatory requirements, to interest income as the main source of our country commercial bank’s profitability will face severe challenges, inverse cycle new regulatory capital of Commercial Bank of our country at the present stage profitability bring adverse effect and effect on the main source to deposit ratio changes. Are givenat the end of this paper deal with the regulation on China’s commercial banks, to achieve sustainable profitability policy recommendations: to broaden the financing channels, innovative capital instruments; transformation of the mode of operation,vigorously develop the intermediate business; to improve operational efficiency,reduce operating costs.common problem faced by Chinese commercial Banks. |
