Leverage Regulatory Impact On Operational Performance Of Listed Commercial Banks In China

Under the background of financial disintermediation,interest rate marketization and the development of Internet finance,the development of commercial banks is facing a series of challenges.In this case,the level of business performance of commercial banks has been the focus of attention in the financial industry.The collapse of Lehman Brothers Investment Bank in 2007 has had a huge impact on the banking industry of the whole world.In this crisis,the regulatory authorities realized that there are still many deficiencies in the regulation,and the capital adequacy ratio has its own defects,which is not enough to maintain the stability of the entire financial system.As a result,the Basel Committee,after a study of the capital adequacy ratio,Based on the introduction of leverage regulatory indicators,in December 2010 issued a new banking regulatory document-Basel II.After that,in June 2011,China Banking Regulatory Commission(CBRC)followed the international standard and formulated the measures for the supervision and management of leverage ratio,put forward a 4% regulatory requirement for Chinese commercial banks,and explained in detail the calculation method of the leverage ratio index and the arrangement of the transitional period.Therefore,as a new regulatory index of commercial banks,it is of practical significance to study the impact of leverage ratio on the performance of commercial banks.This paper first combs the relevant literature about the leverage ratio supervision and the commercial bank management performance,taking the influence of the leverage ratio supervision on the commercial bank management performance as the breakthrough point of this paper.In the theoretical part,the paper defines the leverage ratio of commercial banks and business performance.When analyzing the performance of commercial banks,it is found that domestic and foreign scholars do not have a consistent definition of this.Based on the situation of our country,this paper thinks that the financial index will be more accurate than the non-financial index in evaluating the performance of the commercial bank in our country.Therefore,the relevant indexes are selected from the aspects of the commercial bank's profitability,risk control ability anddevelopment ability.And comparative analysis.The entropy weight method which can objectively give weight will be more effective in the synthetic operation performance index.Secondly,through the analysis of the status of the monitoring index of leverage ratio and the current situation of operating performance,the relationship between the two is further clarified.Then,the data of the 2008-2016 years of sixteen listed commercial banks in China are taken as samples to construct the panel data.The model is an empirical analysis of the leverage and operating performance of commercial banks,and a significant negative correlation is found between the leverage ratio and the operating performance of the commercial banks in China.However,the analysis of different types of commercial banks has found that the leverage ratio supervision tool helps to improve the large commercial banks.The operating performance will have a negative impact on the performance of the joint-stock commercial banks and the city commercial banks.Finally,this paper puts forward three suggestions for the commercial banks to improve their overall operating performance under the circumstances of leveraging the standard: first,commercial banks should promote the innovation of the traditional deposit and loan business,accelerate the transformation of the business structure,and develop the middle in the middle of the business.Business banks improve the profit level of commercial banks;secondly,commercial banks should optimize their own credit structure,strengthen the ability to deal with bad assets and improve their risk control level.Finally,commercial banks should increase their technical input,strengthen staff training and improve their long-term development ability.The innovations of this paper are as follows: first,through the collation of relevant literature,it is found that after the self-leverage ratio supervision index is put forward,most scholars mainly focus on whether the leverage ratio supervision index is effective or not.There is relatively little discussion about the relationship between bank leverage ratio and operating performance.And only a few papers used ROE to measure the performance of commercial banks.In this paper,we adopt an objective method to give the index weight-entropy method to evaluate the performance of commercial banks.And combine it with the leverage index,deeply discuss the relationship between the two,enrich the existing research content.Second,the limitation of the article The sex is quitestrong,can explain the research question.With the constant change of our country's economic development situation and the rise of the new Internet finance,the commercial banks have to deal with more and more situations,and the changes are more and more big.Therefore,this paper selects the latest data from 2008-2016 to study the impact of leverage ratio on bank performance.