Research On The Influence Of Capital Constraint On The Financial Performance Of Listed Commercial Banks

With the continuous development of the financial market,the operating environment of commercial Banks is gradually complicated and the operating risks are constantly increasing.In order to enable commercial Banks to operate steadily,China’s financial regulatory authorities have formulated a series of policies to supervise the operation of the banking industry,including the supervision of the capital of commercial Banks.According to the relevant requirements of Basel accord,the supervision of commercial bank capital by regulators is mainly reflected by the capital adequacy ratio.The higher the capital adequacy ratio the more strict the capital supervision is.By restricting the bank capital,the regulator enables the commercial bank to have enough capital to deal with the risks in the operation process.However,although this kind of capital constraint can reduce the operation risk of commercial Banks and improve the operation robustness of commercial Banks to some extent,the idle assets generated by capital constraint will reduce the return on assets of commercial Banks,and both of them will affect the financial performance of commercial Banks.At present,scholars at home and abroad have no unified conclusion on the impact of capital constraint on the financial performance of commercial Banks.With the intensification of the competition in the banking industry,China’s supervision on the capital of commercial Banks is more and more strict.Therefore,the research on the impact of capital constraint on the financial performance of commercial Banks is particularly important.First,this paper introduces the domestic and foreign research and related theories.Then,16 a-share listed commercial Banks in China were selected to analyze the status of capital constraints and financial performance of Banks in China based on their data from 2009 to 2018.Then carries on the empirical analysis of the selected samples,first in the process of empirical analysis by SPSS software calculation comprehensive financial performance of commercial bank,and then using STATA software on capital adequacy ratio and the commercial bank financial performance by regression analysis,the results show that the capital adequacy ratio of commercial Banks financial performance have a significant impact,and the correlation is negative to the relationship.In addition,the non-performing loan ratio,cost-to-revenue ratio and the development of the macro economy of commercial Banks will also have a significant impact on their financial performance.Finally,based on the analysis of the currentsituation of commercial Banks and the empirical results,this paper puts forward some Suggestions on how to improve the financial performance of commercial Banks under the premise of capital constraints.In this way,commercial Banks can have a clearer understanding of the impact of capital constraints on their financial performance,and then they can improve their financial performance according to the corresponding countermeasures.