Research On The Impact Of Capital Regulation On Bank Credit Term Structure In China

The bank has a very important position in China's financial system.For this reason,bank capital regulation has become the focus of financial supervision.After the outbreak of the financial crisis,the global countries have recognized the importance of the control of the financial risk.In this critical timing,the Basel III came into being.China began its implementation of a new round of large bank capital regulation in 2011.Since the reform and opening,the proportion of long-term loans is in a rising trend,which is also an important reason for the recent liquidity shortage,the high cost of capital and maturity mismatch generation.Whether the term structure change has a link with China's banking capital supervision is the main subject of this study.In this paper,we focus on the study of bank capital regulation effect on overall bank credit and credit term structure.Using the 2005-2013 data of 31 commercial banks and the unbalanced panel data regression model to carry out the empirical research,we find out these main conclusions:the pressure of capital regulation makes banks tighten its own credit,but the result is not obvious.As to the term structure of credit,we find that,in overall,the capital regulation makes the bank cut short-term loans proportion and increase long-term loans proportion.This result can to a certain extent explain,with the capital adequacy ratio increases,the proportion of long-term loans continued to rise in recent years.The term structure of capital regulation did not significantly change for banks which have a high capital adequacy ratio.But banks which have a low capital adequacy ratio increased the proportion of long-term loans proportion to meet regulatory requirements and profitability requirements.According to the empirical results,we finally put forward some suggestions on the supervision of banks,mainly including:to increase financing channels for enterprises,vigorously develop the capital market and the bond market,adopt diversification of supervision and differentiation regulation.