The Impact Of Capital Adequacy Ratio Regulation On Credit Expansion Of Listed Banks In China

In today’s world,cooperation and win-win is the main theme of the times,the development trend of world diversification and economic globalization is deepening,and Community of Shared Future for Mankind’s concept is deeply rooted in people’s hearts.Under this background,when the financial crisis breaks out,no country can be immune to it.As an important part of the financial system,it is imperative to strengthen supervision in order to improve its ability to resist risks.To this end,various countries have issued various control policies and international cooperation control agreements,which put forward higher requirements for the bank’s capital level.Among them,Basel III has become a resolution recognized and implemented by most countries in international cooperation and an important cornerstone in the field of international financial cooperation.The promulgation of "Measures for Capital Management of Commercial Banks(Trial)" indicates that China’s capital market is in line with international standards,and the requirements for capital supervision are getting higher and higher.However,after the implementation of the capital adequacy supervision policy,many countries have experienced different degrees of credit crunch,which has to promote the sustained and healthy development of the banking industry,but it has hindered the credit expansion and affected the normal social and economic operation.Based on the existing literature and related theoretical analysis,this paper selects the relevant indicators of 18 commercial banks from 2013 to 2021 for empirical analysis,demonstrates the influence of the "new approach" on bank credit expansion after formal implementation,and discusses the relationship between capital supervision and expansion of banks of different scales.According to the results of theoretical research and empirical analysis,this paper draws the following conclusions:(1)The higher the capital adequacy ratio,the faster the bank credit expansion.(2)The regulatory pressure of capital limits the expansion of bank credit to some extent.(3)Banks of different sizes have different responses to regulatory pressure.Compared with systematic banks and large banks,non-systematic large banks are seriously affected by regulatory pressure,and the reduction of credit scale is obvious.Finally,in order to alleviate the restraining effect of regulatory pressure on bank credit expansion,according to the research results,the countermeasures are put forward from the perspective of commercial banks and financial regulators respectively.(1)to improve the ability to replenish endogenous capital.(2)Rich supplementary channels for foreign investment.(3)Establishing a long-term mechanism for capital replenishment;(4)Opening capital markets and expanding financing channels.(5)Let go of the role of capital restriction and restrain the blind expansion of assets.(6)Deepening banking reform and promoting bank merger and reorganization.