Research On Capital Management Of Commercial Banks Under The Framework Of Macro-prudential Management

China Banking Regulatory Commission issued the "Capital Management Measures for Commercial Banks(Trial)" in 2013.With the continuous improvement of capital management level,the current capital constraint of Basel III on China's banking industry has been weakened.The pressure of current commercial bank capital management comes from macro-prudential management requirements.The People's Bank of China implemented macro-prudential management in 2010,and successively established a “macro prudential policy framework” and a “macro-prudential assessment procedure(MPA)”.Although the management framework has been continuously improved and enriched,with the capital as the link,the context of transmitting macroeconomic and financial goals to microfinance entities and implementing effective constraints has not been changed.In recent years,with the introduction of differential insurance rate ratings for deposit insurance,central bank financial institution ratings,and supervision on domestic systemically important banks,the core position of capital in macro-prudential management has become more prominent,and the use of various macro-prudential tools has put forward higher requirements on Capital management of commercial banks.From the perspective of individual commercial banks,macro-prudential management often conflicts with its own value maximization.How to achieve the greatest common denominator of micro-interests and macro-goals on the basis of observing the macro-prudential policy orientation requires capital management.Strengthening research on the core tools of micro and macro intersections,focusing on how to combine changes in the economic cycle,do a good job of capital management in advance based on the macro-prudential management policy framework,and forming a business strategy with capital as the core and different cycles,all have important practical significance.This paper combines the latest regulatory policies to sort out the domestic macro-prudential policy toolbox and its practice,including the time dimension toolbox,the structural dimension toolbox and the matching dimension toolbox.Through the research and analysis of the mechanism of various tools in the macro-prudential management toolbox and the intrinsic relationship with capital management,the article finds that the application of tools in the current three dimensions toolbox has two effects on the capital management of commercial banks.On the one side in order to prevent systemic risks that cannot be reversed,the use of the structural dimension tools and the matching dimension tools has increased the requirements for capital adequacy ratios.On the other side the use of the time dimension tools have increased counter-cyclical supervision.Both sides have caused a huge pressure on capital management of commercial banks.Combining the challenges of the capital management faced by commercial banks in China,the strategy to meet the challenges brought by the structural dimension tools and the matching dimension tools is to raise return on capital level by strengthening portfolio management of four dimensions,to establish the ability of steady growth across the economic cycle,to meet the raising capital adequacy requirement,as well as to save risk weighted assets from three aspects.It also offers capital management response mechanisms in the economic up cycle and economic down cycle respectively to meet the challenges brought by time dimension tools.The study found that in predicting the economy's entry into the upward cycle,it is necessary to increase asset placement,which should focus on asset securitization at the same time.In that way can achieve more profit accumulation in the current period,reduce asset growth and capital consumption,and improve countercyclical capital buffer.It not only meets the requirements of macro-prudential management of various tools,but also prepares for the economic down cycle.When predicting the economy's entry into the down cycle,the focus is on preparing for the issuance of capital instruments,replenishing capital in advance,preventing countercyclical adjustments from increasing capital consumption,and strictly regulating the requirements for capital adequacy.The effective implementation of the above conclusions requires the joint efforts of the regulatory authorities and commercial banks.This paper proposes a further outlook on the capital management of commercial banks from the aspects of accelerating the innovation and supplement channels of capital instruments,improving the consistency of micro-prudential supervision and macro-prudential management objectives.