An Empirical Analysis Of The Impact Of Leverage Ratio On The Operating Profit Of Commercial Banks

The financial crisis that broke out in 2008 had a huge impact on the global economy,which led to the complete collapse of the global financial system and the gradual collapse of the real economy.Many financial institutions were declared to disintegrate.In order to prevent risks,people began to sell securities in large quantities,resulting in the collapse of the stock market and the bursting of a large number of asset bubbles.After the outbreak of the financial crisis,a large number of scholars began to study and analyze it.They believe that the main reason is that the commercial banks in developed countries continue to expand the scale and lead to excessive leverage.Excessive risky business has buried hidden dangers for the outbreak of financial crisis,and commercial banks use asset securitization to transfer assets on the balance sheet,apparently meeting the regulatory requirements of the capital adequacy ratio of the regulatory authorities,but in fact,their own capital is insufficient,and the ability to resist risks is greatly reduced.The outbreak of the crisis has also led to a rethink of the supervision of financial institutions around the world and an awareness of the inadequacy of the supervision of capital adequacy ratio.Under this background,"BaselⅢ" came into being under the continuous exploration and improvement,and the era of leverage ratio supervision also came.China also draws on the experience of the world and combined with its own actual conditions,promulgated the Measures for the Management of the Leverage Ratio of Commercial Banks(Revised)in 2015 to regulate the leverage ratio of commercial banks.The economic development of commercial banks has far-reaching influence,and the development of commercial banks is of great significance to the overall economic development of our country.Therefore,the study of the operating profit of commercial banks also becomes the focus of the experts and scholars.The supervision of the leverage ratio will inevitably affect the operating profit of commercial banks.Therefore,this thesis studies the influence of bank leverage ratio on the operating profit of Chinese commercial banks by analyzing the leverage ratio level and operating profit of Chinese commercial banks.In thesis,bank leverage ratio and commercial bank regulation theory as the starting point,specifically analyzed the leverage ratio on the operating profit of commercial banks.Then,with the help of statistical method and chart analysis method,the leverage ratio and operating profit level of Chinese commercial banks during 2010-2012 are elaborated in detail.On the basis of combining with theories,This thesis puts forward the hypothesis that bank leverage ratio will reduce the operating profit of commercial banks and the influence of leverage ratio on the operating profit of commercial banks is heterogeneous.In view of this,this study will use panel data to establish a model for regression.Through empirical analysis,the final results show that leverage ratio has a significant negative effect on the operating profit of commercial banks and has heterogeneity.Finally,based on the empirical results,this thesis concludes that in order to promote the continuous improvement of the regulatory framework and the sound operation of commercial banks,this thesis puts forward relevant suggestions for the regulators and commercial banks to strengthen the collaborative supervision and speed up the business transformation.