The Impact Of Capital Buffer On The Risk And Performance Of China's Commercial Banks

As an important part of the financial institutions,the importance of commercial banks is self-evident.Under the new normal of economy,commercial banks have made great contributions to China's economic growth.The improvement of commercial Banks' performance and the monitoring of their risks have always been the focus of Chinese scholars and regulators.After the financial crisis of 2008,although the impact on China was relatively small,the damage and economic losses caused by it were enough to make us realize the importance of bank supervision.Cause this,The Basel committee published Basel ?,who put forward the use of countercyclical capital buffer tools to deal with bank pro-cyclicality,and required banks to make countercyclical capital buffers.After that,China's financial regulatory institutions issued the "measures for the capital management of commercial banks,"closely following the pace of international capital regulation.It put forward more explicit regulatory requirements for China's capital regulation.It has been five years since the implementation of the "capital management measures for commercial banks" in 2013.Has the capital supervision of commercial Banks achieved the expected effect?Can the use of counter-cyclical capital buffers positively stimulate bank performance while reducing bank risk?How does capital buffer affect the risk and performance of commercial banks?What about the effect of capital buffers on risk and performance after classifying Banks according to whether they are listed or not and their size of assets?However,the current studies on capital buffer in the academic circle are mainly focused on credit behavior and economic cycle,and the studies on the risk and performance of Banks are also more than the macroeconomic factors,and there are few studies on the relationship between capital buffer and the risk and performance of banks.It is therefore necessary to clarify the relationship between capital buffers and bank risk and performance to ensure that our regulatory policies are prudent and effective.This article selects the 38 commercial Banks in our country as the research sample,using 2007-2015 annual data constituted the unbalanced panel data,using single step system GMM method,studied the capital buffer influence on our country commercial bank's risk and performance,in order to explore capital buffer effect on bank of different categories of risk and performance is not consistent,we also are classified to a bank to facilitate further research.At first,this paper illustrates the research background of this paper significance and innovative points,and then the related literature at home and abroad,and generalizes the research results,then expounds the risk capital buffers and the performance of the related theory,and description and analysis on the current situation of our country,finally to make an empirical analysis of the commercial Banks in China as samples,and put forward the corresponding policy suggestions.The main conclusions of this paper are as follows:first,at the present stage,capital buffer can restrain the risk level of China's commercial Banks,but also reduce the performance level of the Banks,After classifying the Banks according to whether they are listed or not and the size of their assets,the inhibitory relationship still exists.Secondly,from the perspective of capital supervision,the overall regression of the sample Banks shows that capital supervision can weaken the impact of capital buffer on the risk and performance of the Banks,while the regression of unlisted Banks shows that capital supervision can enhance the inhibitory effect of capital buffer on the risks of the banks.Finally,we find that the impact of capital buffer on the risk and performance level of commercial Banks is not a simple linear relationship,but a positive u-shaped and an inverted u-shaped non-lincar relationship,respectively.