Empirical research on Chinese commercial banks' market discipline

摘要

This paper uses a multi-vector econometric model to calculate the relation between Chinese commercial banks' deposit growth rate and the risk variables of deposit-loan ratio, deposit-loan ratio's growth rate, equity-assets ratio, equity-assets ratio's growth rate, ROE and ROE's growth rate. The result shows that the depositors add weak market discipline over our commercial banks, so today our commercial banks' risk should be controlled mainly by method of regulation.