Capital Adequcay,Bank Heterogeneity And Liquitity Creation

Since the global financial crisis in 2008,the strengthening of capital supervision has become the consensus of domestic and international regulatory authorities,but the strengthening of capital supervision will have a huge impact on bank liquidity creation.At the same time,the previous theoretical and empirical studies have found that regulatory capital for different types of Banks' liquidity creation influence have heterogeneity.In order to understand the differences,different types of Banks' liquidity creation is considered in this paper,and carries on the empirical research.According to the method of CATNONFAT and CATFAT constructed by Berger and Bouwman,my article used Bankscope Data Pool 161 banks data,whose it's time from 2005 to 2015,calculating on-balance sheet liquidity creation and on-and-off balance sheet liquidity creation,in all a total of 36 regression result.On this basis,the influence of capital adequacy of different types of Banks on liquidity creation is studied from four aspects:total sample,bank property,asset size and whether to go public.I research the impact of capital adequacy on the creation of liquidity in different types of banks.Through empirical research,this paper found the following four points:Firstly,On a whole,the effect of capital adequacy on the liquidity creation of banks is remarkable negative in the whole sample regression results,namely,for Chinese commercial banks capital adequacy quota impact on liquidity creation is mainly "financial fraglitity-crowding out effect".Secondly,among different types of banks,capital adequacy quota on the impact of bank liquidity creation is different,namely capital adequacy impact on the bank liquidity creation is heterogeneous.In this paper,we find that for the five major state banks,the impact of capital adequacy on its liquidity creation has both "financial fragility-squeezing effect" and"risk absorption effect",but the performance of "financial fragility-squeeze effect" of the banks more;for large joint-stock banks,the impact of capital adequacy on its liquidity creation is mainly "financial fragility-squeezing effect";for small and medium-sized joint-stock banks,the impact of capital adequacy on its liquidity creation is more complex,it is difficult to determine which effect is dominant;For large-scale city commercial banks and large-scale rural commercial banks,the impact of capital adequacy on its liquidity creation is more complex,it is difficult to determine which effect is dominant;for small and medium-sized city commercial banks and small and medium-sized rural commercial banks,the impact of capital adequacy on its liquidity creation is mainly negative,namely,capital adequacy quota impact on liquidity creation is mainly "financial fraglitity-crowding out effect";for foreign banks,the impact of capital adequacy on the liquidity creation of banks is significantly negative,that is,the impact of capital adequacy on the liquidity of foreign banks is dominated by "financial fragility-crowding out effect".Thirdly,the impact of listed bank liquidity creation is mainly"financial fragility-squeeze effect",but different types of banks,the impact is different.For the five major state-owned banks,the joint-stock banks,agricultural commercial banks,listed on it basically did not significantly affect;for city commercial banks and foreign banks,the impact of listed banks liquidity creation is mainly”financial fragility-squeeze effect".For large banks,small banks and micro banks,listing has no significant impact on liquidity creation,and for medium-sized banks,listing has a significant "financial fragility-squeeze effect".Forthly,According to the above research conclusions,the problem is proposed to implement differentiated capital supervision standards,the establishment of counter-cyclical capital buffer,while strengthening the deposit insurance publicity,and as soon as possible to promote the listing of banks,and finally to prevent regulatory arbitrage,should establish a dynamic adjustment mechanism.