The Research Of Chinese Commercial Banks’ Performance Based On Capital Regulation

The global financial crisis broke out in 2008, which has caused terrible influence for the economic growth and financial development around the world. Therefore, countries around the world got a new understanding of financial liberalization. At the same time, the development of financial sector and its regulation began to capture the public’s attention. The risks in bank management, vulnerability and infection makes the supervision departments of all the world much stricter. The commercial banks in our countries gradually listed through corporation equity division reform, and were evidently influenced by the world economic periodicity. In combination with the international regulatory standards and China’s present situation, Regulators in our country formulated a series of rules and regulations for the regulatory capital to strengthen the commercial bank’s ability against the risks and promote the stable operation of the banks. Regulatory capital stipulated the bank’s minimum capital reserves to limit the banks’ risk behaviors, guarantee the safety of the deposits and prevent the banking crisis. this makes the fund in the bank idle and have an negative effect on operating performance of Banks. From another perspective, the supervision for capital adequacy ratio can resist the risk in the process of operation, and improve the management level of the bank. From the different points of view, there is no consistent conclusion about the capital regulation effect on bank performance in China.Therefore, this article does the research to the impact on the operating performance of China’s commercial Banks from regulatory capital. This article, on the basis of theoretical analysis on the regulatory capital and business performance, analyzes the conduction effect of the operating performance on the regulatory capital of commercial Banks from the level of credit behavior, risk management, profit model and capital structure. According to 15 commercial Banks’ public disclosure of seven-years annual data on commercial Banks, it analyzed the current situation of its business performance step by step under the pressure of capital regulation, and provided the data for subsequent empirical research. In the empirical part, firstly it analyzed the influential degree of capital adequacy ratio in the performance of the different types of commercial banks, and then further from bank assets, bank profitability, safety and liquidity selects the indicators to empirically analyze the performance of commercial Banks under the regulatory capital. Results showed that capital adequacy ratio of China’s commercial bank has the positive relationship with its operating performance; capital adequacy ratio in three different types of commercial bank has a great differences on the contributions; and the control on the variables has the different influence on China’s commercial Banks operating performance. In the end, this article puts forward the countermeasures and suggestions for commercial banks to improve business performance: state-owned commercial Banks and joint-stock commercial banks can increase its business performance through improving the capital adequacy ratio, while the capital adequacy ratio in city commercial banks should be controlled within a certain range; by strengthening the capital management, dissolving the non-performing loans, developing intermediary business and another means, the commercial banks can improve the business performance; they also can improve the business performance through the scale effect.