Capital Regulation, Monetary Policy and Asymmetric Effects of Commercial Banks’ Efficiency

This paper makes a static profit model of commercial banks with double constraint , then we find that: the rate of None-performing loans is inversely proportional to the commercial bank's cost and profit efficiency, the rate of capital adequacy, statutory reserve shows None-linear relationship between commercial bank's cost and profit efficiency. Hence, we define the difference influences of commercial bank's efficiency imposed by capital adequacy and reserve rate as the asymmetric effects of commercial bank's efficiency. What's more, by using listed commercial bank's relevant data from 1998 to 2010, we prove our judgment with Numeric Simulation. Finally, we make result and some suggestions