The Impact Of Leverage Ratio On The Stability Of China's Commercial Banks

Commercial banks are an important source of funds for business investment and the main distribution channel for residents' capital investment.They are the preconditions and foundations for the realization of a sound,efficient and sustainable development of the national economy.Therefore,the stability of commercial banks has always been a very important factor for financial regulators and commercial bank managers Valuable indicators.After the financial crisis in 2008,the financial regulation began to attach importance to the supervision of leverage once again.The Basel III stipulated the regulatory threshold of 3% of the leverage ratio.China also promulgated the Measures for the Administration of Leverage Ratio of Commercial Banks 4% leverage the bottom line of regulation,this paper focuses on the impact of leverage on the stability of commercial banks.In the aspects of the regulation of leverage ratio and the theoretical analysis of the stability of commercial banks,the article firstly discusses the connotation of the concept of leverage ratio and the stability of commercial banks,and probes into the theoretical mechanism of the leverage regulation affecting the stability of commercial banks: the regulation of leverage limits the high of commercial banks Leveraged operation leverage is the core mechanism of leverage stability supervision affecting the stability of commercial banks,leverage regulators to curb disorderly development of the mechanism of off-balance sheet and derivatives business,leverage regulation emphasis on the level of capital of commercial banks to enrich the three levels is the lever of our country Rate Supervision,Promote the Stability of Commercial Banks,Paths and Mechanisms.In terms of leverage ratio supervision and the status quo of commercial bank stability,the leverage ratios of China's state-owned large commercial banks,national joint-stock commercial banks and city commercial banks meet the requirement of 4% leverage rate regulation,in which the leverage of large state-owned commercial banks is greater than The national commercial banks,urban commercial banks and urban commercial banks have higher leverage than the national urban commercial banks.At the same time,Z-index method is adopted to measure the stability of commercial banks.The Z-index of the large state-owned commercial banks is generally higher than that of the national joint-stock commercial The Z index of China Merchants Bank was the highest among banks and city commercial banks and national joint-stock commercial banks,and the Z index of city commercial banks in Nanjing Bank was the best.In the empirical research on the influence of leverage regulation on the stability of commercial banks,this paper builds the following panel econometric model based on the deduction of the relevant theory and the status quo,combined with the variable design and the correlation test of the article,the regression results show that the leverage ratio Regulatory and commercial bank stability is positively correlated,it can be shown that China's leverage regulation will help improve the stability of commercial banks;at the same time,the size of commercial banks,the average return on equity and the stability of commercial banks is positively correlated,The non-performing loan ratio is negatively correlated with the stability of commercial banks.The empirical results are consistent with the assumptions.Specifically,from the perspective of Model IV,the stability of commercial banks increased by 1.579 units for every 1 unit improvement in leverage ratio supervision;for each unit increase of ROE,the stability of commercial banks increased by 1.2391% units;and the NPL increased 1 unit,the stability of commercial banks decreased by 2.3162% units;the size of commercial banks expanded by 1 unit,and the stability of commercial banks increased by 1.1455 units.Based on this,our regulators should carefully observe the effectiveness of the leverage rate regulation,the establishment of regulatory framework to adapt to market development;based on the operating characteristics of China's commercial banks,the implementation of scientific differentiated leverage ratio supervision;adhere to strengthen the commercial bank's capital supervision and encouragement Commercial banks should carry out internal and external financing.Commercial banks in our country should pay equal attention to both internal and external financing and speed up the transformation of operation under the premise of compliance with regulations to improve the capital utilization efficiency of commercial banks.