The Research On The Effect Of Capital Buffer Period On Credit Behavior Of Listed Banks

The subprime crisis in 2008 has triggered profound reflections on bank capital regulation.To reduce bank credit pro-cyclical and strengthen the robustness of bank management have had a realistic significance on the smooth development of the economy of our country.Basel III explicitly announced that banks should implement counter cyclical capital buffer mechanism.At the same time the implementation of the"commercial bank management way" marks the regulatory capital which converted from soft to hard constraints.With the implementation of the measures,counter cyclical capital buffers on bank credit pro-cyclical slow-release effect is becoming more and more obvious.There are many researches on capital buffers of periodic,but under different economic cycles.There are few articles about the bank capital cushion to credit pro-cyclical effect mechanism.The discussions and studies on such problems will help regulators reasonably use capital buffer adjustment mechanism to improve the efficiency of counter-cyclical capital regulation.The article mainly adopts a combined method of theoretic analysis and empirical research in order to study on the impact of listed bank capital buffer on credit behavior.Based on relative research home and abroad.This paper first introduces the theoretical analysis of the impact of capital buffer period on credit behavior.Secondly,the paper introduces the mechanism of capital buffer on credit behavior.About the empirical research,the paper use single-step GMM estimation and 16 listed Banks in China from 2004 to 2014 data to research capital buffers periodically under the effect of "Molecules" and "denominator".Lastly the paper analyses capital cushion to credit growth,interest rates on deposits respectively premium and the impact of loan interest rate premium under the perspective of all the sample banks,capital adequacy ratio,different types of banks.The empirical results show:First,listed commercial Banks capital buffers has obvious positive correlation with the economic cycle as result of molecular behavior.Second,consider the different nature of the banks,because governments in state-owned commercial bank play an absolute control status and equity with flexible dividend distribution policy,so the pro-cyclical about state-owned Banks' capital buffers become more obvious.Third,low capital adequacy ratio of Banks take measures to meet minimum capital requirement through expanding credit.The characteristics of adjusting the effect on the denominator capital buffers counter-cyclical is obvious.Fourth,When considering capital buffers and the economic cycle,capital buffer counter cyclical about adjusting credit growth counter-cyclical effect is more and more strong.Credit growth has obvious counter-cyclical characteristics in our country in recent years.Fifth,during the boom phase,improving commercial bank loan premium can suppress the demand of real economy for loans,Thus,the loan of commercial Banks premium reduce.Sixth,increasing bank capital buffers can reduce the cost of bank deposits,which will reduce the deposit premium,so capital buffers can release commercial bank deposit premium pro-cyclical.Finally.This paper puts forward some suggestions.Firstly,based on the angle of relationship between the capital buffers and the economic cycle,I put forward suggestions about the policy,such as,broadening the financing channels,promoting the construction of the country's financial safety net,strengthening the supervision of bank leverage and establish forward-looking dynamic provisioning system.Secondly based on the effect of capital buffers periodic on credit behavior,I put forward recommendations,which mainly include the reasonable coordination of monetary policy and regulatory goal,the changes in the fair value measurement methods,the way of widening the channel of the bank profit and strengthening the management of credit structure.