Capital Buffer and Risk Behavior of Commercial Banks

摘要

the paper studies risk behavior and capital buffers of China's commercial banks under capital regulatory whose core is capital adequacy ratio.We find that the regulatory pressure doesn't significantly affect the risk behavior of commercial banks.It doesn't affect the capital adjustment of commercial banks which have already violated regulatory capital requirement.Whereas, commercial bank which doesn't violate the regulatory requirement but approaching the threshold, will react to this pressure by finetuning of supplementary capital to increase its capital adequacy ratio.