The Impact Of Capital Adequacy Ratio Supervision On Credit Expansion Of Domestic Small And Medium-sized Commercial Banks

Banking risk management has always been Highly concerned,and the canpital as the last line of defense against banking risks is highly valued by domestic and foreign regulatory agencies.In order to ensure the healthy development of the bank,the Basel Committee passed the Basel Accord I in 1988,which established the first unified standard for capital adequacy rate supervision,many countries have also adopted this standard to conduct risk management for their own banks and improve the banks’ability of their own country to coping with risks.With the development of economic and financial innovation,the Basel Committee has continuously revised Basel Accord I according to the actual situation of the banks.The Basel Committee’s regulations on capital adequacy ratio have become stricter and stricter,and China is also gradually aligning with international standards in the supervision of capital adequacy ratio.The capital adequacy rate supervision is of great significance for preventing bank risks and maintaining the stability of the banking and financial system.The impact of capital adequacy ratio supervision on the main business of banks has also attracted the attention of various countries,the main business related to bank capital is loans,bank credit plays an indispensable role in the optimal allocation of social resources,and it’s also an important driving force for promoting economic restructuring,how the stricter capital adequacy ratio regulation will affect the credit of domestic commercial banks is the core content of this paper.The central bank’s monetary policy of quantitative easing in recent years has promoted the credit expansion of the banking industry,Credit expansion has helped stimulate economic growth,but extensive credit expansion will increase the risk of banking operations.In order to guard against the risks brought by the bank’s blind credit expansion,national regulatory agencies have formulated some supervision rules.Whether the supervision of capital adequacy ratio will affect the credit expansion of banks is mainly researched by this paper.Due to the large scale of large state-owned commercial banks,sufficient capital,and extensive external financing channels,their credit status is almost unaffected by the supervision of capital adequacy ratio.Therefore,the research object of this paper is small and medium-sized commercial banks.This paper mainly studies how the increasingly strict China’s capital adequacy rate supervision affect the credit expansion of domestic small and medium-sized banks,and propose relevant policy recommendations according to theoretical analysis and empirical analysis for small and medium-sized commercial banks and regulators.The full text is divided into five chapters.The first chapter introduces the research background,research purposes and research significance of the impact of capital adequacy ratio supervision on the credit expansion of small and medium-sized commercial banks,analyzing and summarizing the results of domestic and foreign literatures from the direct impact of capital adequacy rate supervision on bank,s credit expansion,monetary policy credit transmission mechanism,pro-cyclicality of capital regulation,derivation of the balance sheet equation,and the research on the impact of capital supervision on different types of banks,and then review this research results.Next,the research methods and ideas of the article are put forward,and the innovation points and deficiencies are pointed out.The innovations of this article including selecting 2012 as the supervision year,selecting small and medium-sized commercial banks as the research objects,dividing small and medium-sized commercial banks according to asset size and pro-cyclicality of capital adequacy ratio,and new findings of the study.The second chapter analyzes the evolution of the international Basel Accord,the evolution and current status of China’s capital adequacy regulation,and further studies the impact of China’s capital supervision on the credit expansion of small and medium-sized commercial banks.The third chapter is the theoretical research part,which is carried out from three aspects:the direct influence mechanism of capital adequacy ratio regulation on bank credit expansion,the indirect impact mechanism and the derivation of asset-liability equations,and then the theoretical hypothesis is put forward.To verify the theoretical hypothesis of third chapter,the fourth chapter selects the annual data from 2004 to 2017of 21 small and medium-sized commercial banks in China,and conducts phased research with 2012 as the time node,the panel data regression model is used to analyze the overall small and medium-sized commercial banks.Small and medium-sized commercial banks are divided into two types according to the bank’s asset size and the pro-cyclicality of capital adequacy ratio:joint-stock commercial banks and city-rural-commercial banks,and regression analysis is carried out separately.The fifth chapter summarizes the results of the empirical research and concludes that the capital adequacy ratio supervision will inhibit the credit expansion of small and medium-sized commercial banks.The results of separate research on joint-stock firms and city-rural-commercial banks show that capital adequacy supervision has less inhibitory effect on credit expansion of joint-stock firms,and has a stronger inhibitory effect on credit expansion of city-rural-commercial banks.Finally,policy recommendations are put forward from the perspective of banks and regulatory agencies respectively.It is believed that banks should improve their profitability by strengthening the development of intermediary business,improving service quality accelerating the progress of listing,and allocating assets rationally,and then expand the source of capital.Regulators should also further strengthen capital adequacy regulation,improve the classification and phased supervision system,and expand financing channels with small and medium-sized commercial banks jointly.