Our Country Commercial Bank Set Aside Coverage Influence Factors of Research
|School||Shanxi University of Finance|
|Keywords||Provision for coverage indicators defect panel factor model provisions for loan rate|
Since2008the us subprime mortgage crisis, the risk of commercial banksupervision by countries around the world including the attention of regulators andbanking. Provision for coverage as an important indicator, resist risk has been more andmore people pay close attention to.In this paper, the definition of the provision for coverage in Chinese commercialBanks, the calculation method, the evolution process of provision for coverage, themeaning of the index reached a consensus, and index of defect and so on has carried onthe detailed dialysis, and from the macroeconomic level and the size of Banks,efficiency, profitability, risk control and supervision and so on bank micro examines thefactors that influence the provision for coverage of Chinese commercial Banks and thecombination of macro economic variables and bank efficiency index, profitability indexand microscopic economic variables such as risk control indicators established thecommercial Banks in China the influence factors of the provision for coverage ofempirical panel model, to index the influence factors and the index and combine thefeatures of the empirical test. Loan provisioning rate and provision for coverage incomparison to analyze the feasibility of its index regulation, the empirical results showthat the GDP growth rate showed significant negative correlation with provision forcoverage, this could be the financial crisis under the Chinese regulatory authorities forBanks set aside coverage caused by strict enforcement of the regulation, also reflects thepro-cyclical characteristics of firm provision for coverage of China is not obvious;Non-performing loan ratio is negatively related to the provision for coveragesignificantly, on the one hand, China’s commercial Banks to set aside to cover theprovision is not standard, and its credit assets risk level does not adapt, on the otherhand, due to the loan provisioning rate=provision for coverage*non-performing loanratio, provision coverage and non-performing loan ratio deviation shows that theprovision for coverage index needs and cooperate with each other using loanprovisioning rate index; Cost income ratio showed significant negative correlation withprovision for coverage, firm provision for coverage in China can be a very good abilitylevel reflects its efficiency; The weighted average return on equity and provision forcoverage has significantly positive correlation, businesses in China to a certain extent,there is a use of a provision coverage tool for profit manipulation behavior; Thenon-performing loan ratio will interact with the provision for coverage of the lag issue of relationship between indicator also can be seen that lack of provision for coverage inChina, forward-looking defect characteristics are not obvious and so on; Thus, thusscientifically to the provision for coverage index risk regulation in our country to usethe rationality of the judgment, demonstrates the current provision for coverage inChinese commercial Banks in detail the advantages and disadvantages of supervisionsystem, demonstrates the current loan provisioning rate and provision for coverageindicators used in conjunction the feasibility and the necessity of and finally putsforward the reform and improve the policy Suggestions of bank credit risk supervisionindicators.Main innovation point of this article is to the influence factors of the provision forcoverage of commercial Banks, reflected through the panel model, will the provision forcoverage of commercial Banks and the influence factors to establish a stablerelationship, for our country to establish the system of commercial Banks to set aside,provides the scientific basis.