Liquidity Regulations,Capital Constraints And Credit Of Bank

As the most important financial institutions in a country's financial system,commercial banks have a crucial impact on economic stability.In the event of an accidental event,risks can easily spread to the whole banking industry even the financial system.The 2008 global financial crisis has exposed shortcomings of the existing financial regulatory system,as well as sounded the alarm for the whole world.Therefore,Basel Committee on Banking Supervision in 2010 promulgated the "Basel III:International Framework for Liquidity Risk Measurement,Standards and Monitoring "to build a more comprehensive risk-based regulatory framework.China's banking regulatory system was adjusted accordingly.The Measures for Capital Management of Commercial Banks issued in 2012 and the Measures for the Administration of Liquidity Risk of Commercial Banks issued in 2015 clarified detail requirements for the capital adequacy ratio and liquidity risk management index of commercial banks in our country..Liquidity regulations and capital constraints always have an impact on macroeconomics through bank credit channels.Therefore,this thesis reviews the origins and development of liquidity risk supervision and capital regulation,as well as attempts to summarize and explain the indicators of liquidity regulation and capital constraint,which have been used in the past.Then,this article analyzes the dual impact mechanism of liquidity regulation and capital constraint on bank credit using the decision model of commercial bank credit behavior,and finds that the bank credit will be significantly affected by liquidity regulation when capital is constrained.Based on the latest liquidity regulation index(Net Stable Funding Ratio)and capital constraint index(capital adequacy ratio),this thesis chooses actual GDP,1-year deposit interest rate,bank asset size,the listing situation and profitability as control variables,with bank credit growth,credit term structure,credit quality and credit concentration ratio as explained variables,analyzes the effects of credit behavior on 29 commercial banks during the period from 2005 to 2015.It is found that NSFR,a new indicator of liquidity regulation in Basel III,has a significant effect on the credit behavior which means NSFR can effectively reflect the long-term capital liquidity of commercial banks.In addition,this thesis researchs how the liquidity regulations and capital constraints affect the bank credit relatively,through building regulatory pressure and penalties proxy variables.The results show that the implementation of the regulations are produce positive effects on bank credit behavior adjustments.At last,dummy variables reflecting the capital of banks are added to the existing model to test the cross-effects of liquidity regulation and capital constraint on bank credit.The result shows when subject to liquidity regulation,the change of credit growth of undercapitalized banks is more obvious,capital-adequacy banks focus more on credit term structure adjustment,and the more sufficient the bank's capital is,the stronger its ability to offset the impact of liquidity regulation,the more sensitive changes of credit quality is.Finally,considered the current background of bank industry development,this thesis puts forward some suggestions for risk management framework of commercial banks in our country.