The Research Of Capital Adequacy Ratio On The Performance Of Commercial Banks In China

In today's economic globalization background,our government has further deepen the reforming and opening in the financial field to the outside world in our country.At the same time,our authorities have adopted the implementation of stricter financial regulation.The commercial banks,as the most important part of the current financial institutions in our country.The level of the performance and operating results of commercial banks will directly affect the stability of the financial industry in our country.Thus,in China,several large state-owned commercial banks along with somejoint-stock banks and city andrural commercial bank are studying nowadays how to improve their performance,such as improve their profitability,increase the risk management skillsand ability to maintain a good and continuous development in the future.On the other hand,capital adequacy ratio,as the core indicators of regulatory requirements,haslong been the focus of professors,researchersand scholars.Thisthesis aims to study the relationships between capital adequacy requirements and changes of the indicators of the performancein the commercial banks.This thesis summarizes and combines the theories of capital adequacy ratio and performance of commercial banks at home and abroad.And then,combined with all listedcommercial banks on the main board in our country and used their latest data and index,I set up the panel data model,from the perspective of empirical analysis to study the relationship between capital adequacy ratio and performance of commercial banks in the recent ten years.Through regression analysis,the influence of capital adequacy ratio to the efficiency of commercial banks can be concluded that ithas certain limitation on the profitability of commercial banks and ability of scale expansion and development in the future,but it is beneficial for the promotion of risk management.Combined with the regression results of the empirical analysis,in this thesis,I give some suggestions aboutcapital adequacy ratio andperformance of commercial banks,including formulating appropriate capital adequacy regulation requirements,reducing nonperforming loans,establishing ongoing capital supplement mechanism and effective risk management system,improving the ability of cost control,actively opening up new growth point in the future.