A Study on the Effect of Systemic Importance Bank Capital Structure on Liquidity Risk
Abstract
Based on the microdata of 19 systemically important banks in my country from 2010 to 2021, this paper adopts a dynamic panel model to empirically test the impact of systemically important banks' capital structure on liquidity risk from the perspective of the overall capital structure and composition. The results show that the increase in capital adequacy ratio, tier-1 capital adequacy ratio, and the proportion of tier-2 capital bonds will reduce the liquidity risk. The impact of the tier-1 capital adequacy ratio on liquidity risk is more significant than that of tier-2 capital bonds. This paper uses the capital adequacy ratio to study the impact of bank capital structure as a whole on liquidity risk, and tier-1 capital adequacy ratio, and Tier-2 capital debt ratio to study the impact of bank capital structure on liquidity risk. This paper studies the impact of capital adequacy ratio, tier-1 capital adequacy ratio and Tier-2 capital debt ratio on the liquidity risk level of systemically important banks from the perspective of the overall and composition of capital structure. Studying the management of bank capital structure to improve the management level of bank liquidity risk is helpful to enhance the competitiveness of commercial banks, maintain the stability of the financial system and promote the development of supporting the real economy.
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DOI: http://dx.doi.org/10.18686/mmf.v6i5.6756
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