Proceedings of the 8th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2018)

Capital adequacy ratio, bank size and commercial bank risk bearing-- Empirical Analysis Based on 16 Listed Commercial Banks

Authors
Qiang Li, Chunmian Qin
Corresponding Author
Qiang Li
Available Online October 2018.
DOI
10.2991/rac-18.2018.81How to use a DOI?
Keywords
capital adequacy ratio; Bank size; Commercial bank risk
Abstract

Based on the panel data of 16 listed commercial banks in China from 2005 to 2017, this paper uses LS panel data model to analyze the relationship between capital adequacy ratio, bank size and risk bearing of commercial banks in China. The empirical results show that increasing the capital adequacy ratio can reduce the risk bearing behavior of commercial banks; The scale of the bank has a significant negative correlation with the risk bearing behavior of commercial banks in China. The larger the scale, the lower the risk bearing behavior of the bank; Under the condition of increasing the bank size, the capital adequacy ratio has a significant positive correlation with the risk assumption of the commercial bank, that is, the size of the bank inhibits the restraint of the capital adequacy ratio on the risk assumption behavior of the commercial bank to a certain extent. Finally, it is concluded that China's regulatory authorities should fully consider the role of different bank sizes in risk taking when preventing bank risks, and adopt a differentiated capital adequacy ratio system.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 8th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2018)
Series
Advances in Economics, Business and Management Research
Publication Date
October 2018
ISBN
978-94-6252-574-0
ISSN
2352-5428
DOI
10.2991/rac-18.2018.81How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Qiang Li
AU  - Chunmian Qin
PY  - 2018/10
DA  - 2018/10
TI  - Capital adequacy ratio, bank size and commercial bank risk bearing-- Empirical Analysis Based on 16 Listed Commercial Banks
BT  - Proceedings of the 8th Annual Meeting of Risk Analysis Council of China Association for Disaster Prevention (RAC 2018)
PB  - Atlantis Press
SP  - 516
EP  - 521
SN  - 2352-5428
UR  - https://doi.org/10.2991/rac-18.2018.81
DO  - 10.2991/rac-18.2018.81
ID  - Li2018/10
ER  -