Research On The Influence Of Leverage Ratio Supervision On The Profitability Of China Construction Bank

The occurrence of the international financial crisis has brought huge impacts on the real economies of countries around the world.The leverage oversight program developed by banks has made China's regulatory system more sound.In recent years,the leverage ratio of China's commercial banks has continued to rise,which has a certain limit on the level of expansion of commercial bank assets and liabilities,and its profitability has declined.In view of the above problems,this article starts from the two aspects of the level of leverage of the Construction Bank and the effect of the leverage ratio on the profitability of the Construction Bank,and combines domestic and foreign scholars' research on the supervision of leverage ratio and the profitability of commercial banks.The role of supervision on the profitability of CCB is elaborated.This article takes China Construction Bank as the research object,and mainly analyzes the impact of leverage ratio regulation on its profitability.and focuses on analyzing the current mechanism of leverage index supervision on the profitability of commercial banks.On this basis,China Construction Bank's 2007-2018 leverage ratio and financial data were selected as samples.Through a comprehensive analysis of the current status of leverage ratio and profitability before and after the leverage ratio supervision,the panel data of 38 first-tier branches of China Construction Bank were used for empirical analysis and inspection.,which means that under the increasingly comprehensive and strict leverage supervision,a moderate increase in leverage is beneficial to the profitability level of CCB,but an excessively high leverage is It will bring a huge test to the profitability of CCB.Aiming at the above problems and research results,in order to improve the profitability of China's commercial banks under strict supervision,this article puts forward several suggestions for CCB to effectively improve profitability under the leverage ratio supervision: First,strictly observe the regulatory framework and rationally improve Profit model;the second is to optimize asset quality and enhance risk control capabilities;the third is to strengthen financial innovation and expand channels for capital replenishment;the fourth is to build a leverage management system to improve the level of information disclosure.Different from other literatures that study the impact of leverage regulation on bank profitability,this paper takes a micro-perspective to specifically analyze the impact of leverage ratio supervision on the profitability of China Construction Bank,and attempts to propose targeted countermeasures.CCB is a model for the stable operation of China's commercial banks.This article hopes to help to a certain extent help CCB to objectively recognize the deficiencies in profitability with other competitors in the context of leverage supervision.Put forward corresponding countermeasures and suggestions on profitability,and at the same time,it can provide relevant lessons for other commercial banks to improve profitability and contribute a modest contribution to the theoretical research of China's financial supervision.