The Capital and Risk Adjustment Under Regulatory Pressure of Chinese Commercial Banks

hua WEI

Abstract


This paper analyzes the adjustment of Chinese commercial banks’ capital and risk after the implementation of Measures for the Management of Capital Adequacy Ratios of Commercial Banks, using 3SLS technique and a simultaneous equation model (Shrieves and Dahl, 1992) with data of 28 commercial banks. The results suggest that banks increase the capital level in order to meet the reqirement of capital regulation; the regulation pressure increases the risk taken by banks with inadequate capital, and increases the capital level in banks with adequate capital.

Key words: Capital Adequacy Ratios; Regulation Pressure; Risk Taking


Keywords


Capital Adequacy Ratios; Regulation Pressure; Risk Taking



DOI: http://dx.doi.org/10.3968/j.mse.1913035X20110504.z1911

Refbacks

  • There are currently no refbacks.


Copyright (c)




Share us to:   


Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.


We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:
[email protected]; [email protected]; [email protected]

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).

 MANAGEMENT SCIENCE AND ENGINEERING Editorial Office

Address:1055 Rue Lucien-L'Allier, Unit #772, Montreal, QC H3G 3C4, Canada.

Telephone: 1-514-558 6138
Http://www.cscanada.net Http://www.cscanada.org

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures