Research On The Impact Of Supervision Penalty On Commercial Banks' Illegal Operation

In recent years,the operating conditions of China 's commercial banks as a whole have shown a steady operating trend.The ratio of assets to liabilities has maintained steady growth,the provision coverage provision is relatively sufficient,and the overall profitability has continued to increase.However,after 2016,the supervision of commercial banks became stricter.Both the China Banking Insurance Regulatory Commission and the People 's Bank of China conducted multiple on-site inspections of commercial banks,and the number of administrative penalties for publicizing violations increased significantly.Judging from the situation,strict supervision should have a restraining effect on the number of violations by commercial bank institutions and personnel,but the number of violations did not decrease significantly in 2017 and 2018,and large-scale violations occurred from time to time.Whether the violations of commercial banks are effective is very necessary for regulators and commercial banks.In the form that the illegal operation of commercial banks is more and more valued by regulatory agencies,this article starts from the perspective of regulatory punishment,collects and sorts out previous research theories,and adopts commercial bank supervision theory(fragility theory and information asymmetry theory)and compliance management theory(Corporate governance theory and comprehensive risk theory)and reputation theory are supported to study and analyze the impact of regulatory punishment on commercial banks 'illegal operations,expound the impact of regulatory punishments on commercial banks' illegal operations through risk suppression and profit deprivation,and propose theoretical assumptions.By collecting and collating the 2013-2019 CBRC regulatory punishment announcements and annual report punishments and commercial bank annual reports,the main punishment targets are rural commercial banks,joint-stock commercial banks and state-owned banks,for credit business violations,bill business violations and macro-prudential operations Corresponding penalties for violations can be seen in recent years.Commercial banks have violated regulations more frequently,the number of supervision penalties and the amount of penalties have also peaked,and the number of bank executives disqualified and prohibited from working in the banking industry has increased dramatically.In the empirical aspect,this paper selects panel data of 16 listed commercial banks,uses the logarithm of the amount of regulatory punishment as the main explanatoryvariable,and takes the non-performing loan rate as the agency variable of illegal operation of commercial banks,and empirically studies the impact of regulatory punishment on illegal operations of commercial banks.The results show that the amount of regulatory punishment has a significant impact on the illegal operation of 16 listed commercial banks at a significant level of 10%,and the regulatory punishment has a significant negative impact on the illegal operation of commercial banks.The increase in the intensity of regulatory punishment can significantly inhibit commercial banks The level of risk is particularly effective in suppressing credit risk caused by violations of credit business.However,the loss of profits of commercial banks has no significant effect on the suppression of illegal operations,that is,the regulatory penalties are not strong in suppressing the illegal operations of commercial banks through deprivation of interest.At present,the profitability of commercial banks in China is at a relatively high level.There is room for increasing the cost of violations.Combining theoretical and empirical research results,this article puts forward relevant countermeasures and suggestions for regulatory agencies and commercial banks.Regulatory agencies should improve laws and regulations,avoid a one-size-fits-all law enforcement approach,and at the same time punish institutions,they must also strengthen accountability for individuals,increase the randomness of law enforcement,increase the ability to identify violations and punishment.Commercial banks urgently need to build a good compliance culture,carry out multi-stage training and testing for employees,and at the same time be responsible for the violation of credit business,and achieve a greater warning effect for each employee.