The Effect Of The New Asset Management Regulations On The Profitability Of Commercial Banks

With the development of Socialist market economy,our commercial banks,as independent and self-financing enterprises,have begun to pay more attention to the core goal of the enterprises--profitability.At the same time,the capital management business of the commercial banks is developing vigorously,and the profit model of the commercial banks also tends to diversify in the traditional Deposit-loan gap model,however,the capital management business of our commercial banks develops too late and too fast,which has many problems,affecting the quality of commercial banks’ support and service to the real economy.To solve this dilemma,the People’s Bank of China,the China Banking and Insurance Regulatory Commission,the China Securities Regulatory Commission and the State Administration of foreign exchange jointly issued the guiding opinions on standardizing the asset management business of financial institutions on April27,2018,the new capital management rules.Its aim is to standardize the capital management business of financial institutions,mitigate hidden financial risks,optimize supply-side structure,ensure effective demand-side management,stabilize economic growth,and better help the real economy,to achieve high quality development of the Socialist market economy.So it is of great practical significance to study how the implementation of the new capital management rules will affect the capital management business and profitability of commercial banks,and how the commercial banks will adjust according to the new capital management rules.Based on this,this paper focuses on the new stage of the development of commercial banks’ Capital Management business,and combs the latest research results and related theories at home and abroad,to establish the mechanism of the new capital management rules on the profitability of commercial banks,select the Yield valve in the financial indicators of commercial banks as the explanatory variable to measure the profitability of commercial banks,regarding whether commercial banks set up wealth management subsidiaries under the guidance of the new capital management regulations as an agent variable for the effective implementation of the new capital management regulations,the2021 data of 147 state-owned commercial banks,9 joint-stock commercial banks and 133 city commercial banks from 2010 to 2010 were selected for analysis.This paper constructs a regression model to measure the net effect of implementing the new regulation of asset management by using the double difference method,and carries out a series of robust tests on the empirical results,such as the parallel trend test(using the nearest neighbor matching method)and the propensity match score(PSM-DID),the treatment and control groups were randomly assigned to a placebo test.In addition,this paper uses the intermediary effect model to verify the influence channel of the new capital regulation on the profitability of commercial banks,and further tests the heterogeneity of commercial banks of different sizes,the empirical results show that:(1)the implementation of the new capital management rules has a significant positive impact on the profitability of commercial banks;(2)the new capital management rules improve the risk-bearing capacity of commercial banks,(3)compared with the large-scale commercial banks,the new capital management rules have a more positive impact on the profitability of small-scale commercial banks.Finally,according to the results of empirical research and the status quo of our country’s economic development,we draw the following policy recommendations:(1)commercial banks should actively respond to the new capital management regulations,and develop capital management business according to their own characteristics,deepen the transformation and development;Create new profit growth for commercial banks.(2)the policy authorities should maintain the policy environment for the implementation of the new capital management regulations,improve the quality and efficiency of the capital management business of commercial banks on the basis of controlling risks,and then improve the profitability of commercial banks.(3)all sectors of society should step up publicity of the new capital management regulations,enhance the financial literacy of investors,upgrade Investors to Qualified investors,safeguard the legitimate rights of investors and improve the investment environment.