Author(s)

Jiyun Liao, Yan Liu

Corresponding Author

Yan Liu

ABSTRACT

Against the background of the promulgation of Basel III and China's Additional Regulations on Systemically Important Banks (Trial), for Chinese commercial banks, especially the newly announced Chinese systemically important banks, their capital buffers and the capital replenishment method adopted is more and more worthy of attention and research. This paper calculates and sorts out the capital buffers of 19 systemically important banks in China, and uses the threshold panel model to explore the relationship between core tier 1 capital buffers and capital replenishment methods and bank efficiency. The findings are as follows: (1) the capital adequacy ratio of systemically important banks at all levels in China is constantly improving; (2) the core tier 1 capital buffer will weaken the negative impact of 4.28%on bank efficiency.

KEYWORDS

Systemically important banks, Capital buffer, Capital supplement