A Research On The Influence Of Capital Adequacy Ratio To The Efficiency Of China's Listed Commercial Banks

Banking sector is the main body o f China's financial industry, it is crit ical to the nat ional econo my. The stabilit y and high-efficient running of banking sector not only influence the development of the financial industry, but also the general macro econo my. As a centralized embodiment o f bank co mpet it iveness, bank efficiency plays an important ro le in the future development o f co mmercial banks and the rat ional disposit ion of social resources. Capital adequacy rat io is an important indicator for the supervisors to regulate commercial banks, it may exert equally important effect on the efficiency o f co mmercial banks while guarantee the securit y o f banking sector. Therefore, this paper mainly studies the influence of capital adequacy rat io to the efficiency o f China 's listed co mmercial banks and analyzes the reasons, which is important to make sure the healt hy development of China's banking industr y and the macro econo mic orderly operat ion.On basis o f consult ing related theories and literature at ho me and abroad, co mbining with the actual condit io n o f China listed co mmercial banks, this paper selected several input-output indicators that can accur ately reflect the efficiency o f China listed commercial banks. By using empirical research, this paper analyzed the influence o f capital adequacy rat io to the efficiency of China 's listed commercial banks. As the tradit ional DEA efficiency evaluat ion metho ds ignored the factors o f environment and random error, this paper used three-stage DEA model to measured the efficiency o f 16 listed co mmercial banks, which was based on financial stat istics fro m 2010 to 2013 to make up for the shortcomings o f tradit ional DEA. Furthermore, by building a panel data model, the author performed a regressio n analysis between capital adequacy rat io and bank efficiency, and learned how capital adequacy rat io affect bank efficiency.The empirical results showed that the capit al adequacy rat io of China listed co mmercial banks had a significant posit ive influence on bank efficiency. In the lo ng run, there was an inverted U-curve relat ionship between them. In other words, when the capital adequacy rat io reaches a certain level, it wi ll exert negat ive effect on bank efficiency. Based on above analyses, some reasonable suggestions were made so as to help financial regulat ion depart ment to opt imize and enhance the capital adequacy rat io management level, as well as to help commercial ban ks to improve efficiency.