Research On The Influence Of Leverage Regulation On China's Commercial Bank Credit Behavior

Although it has been nearly a decade since the 2008 financial crisis,its influence continues.The financial crisis has made regulators begin to realize the shortcomings of capital adequacy supervision indicators in capital management.Only capital adequacy supervision is not enough to ensure the stability of the financial system,and there should be targeted introduction of leverage regulatory indicators.Therefore,after a lot of discussions,international regulators launched Basel Ⅲ in 2010 and added the standard of leverage regulation.Following the pace of capital management in the world,China Banking Regulatory Commission issued leverage supervision and management document in 2011,put forward 4% minimum regulatory requirements for China's banks,and then passed the revised new leverage management document in 2015.Therefore,the study of leverage has a great practical significance for commercial banks and regulatory authorities.Using the method of combining theoretical analysis and empirical study,this paper selects the panel data of 45 China's commercial banks for 2007-2016 years,and studies the influence of leverage supervision index on the credit scale and credit structure of commercial banks,which is of certain significance to promote the sound development of China's commercial banks,and has certain reference value for the supervision of bank capital.The main conclusion of this study is:(1)There is a reverse relationship between leverage and loan growth rate for China's commercial banks.It also found that leverage regulation is more restrictive to the credit growth of large scale commercial banks(such as large state-owned banks)than those with smaller assets(such as city commercial bank and rural commercial bank).That is to say,commercial banks with large assets have greater binding force,while those with smaller assets have less binding force.(2)The introduction of the leverage supervision index will lead to changes in the credit structure of banks.For the commercial banks as a whole,the leverage regulation will lead to thestructure of its loans to a higher risk of credit,which indicates that the leverage monitoring measures may lead to the reverse selection of commercial banks,and then increases the operating risk of banks.For different types of banks,it has been found that for large banks(large state-owned banks and national joint-stock banks)leverage constraints can achieve their regulatory purposes and have a positive effect;for small banks(city commercial bank and rural commercial bank),the constraint of leverage will cause banks to choose risky credit loans and corporate loans,which will lead to the reverse choice of banks and make their operations face greater uncertainty.Finally,according to the research results,from the two aspects of regulatory authorities and commercial banks,we give policy recommendations to optimize bank credit under the leverage regulation.The innovation of this paper is mainly in the empirical aspects: Firstly,the effectiveness is strong.To a certain extent,it can explain the latest development.With the rapid development of China's economy,the great progress of technology and the rapid rise of network finance,the environment of banks has changed greatly.Therefore,this paper selects the latest data of 45 China's banks from 2007-2016 to explore the impact of leverage on the scale and structure of bank loans.Secondly,the paper use the method of classification and comparison,which studied the effect of leverage on the structure of different types of bank loan,and made certain supplement to the previous research.