With the deepening of interest rate liberalization reform, the profit model of banks with the difference between deposit and loan interest as the main source of income is threatened. Compared with state-owned large banks, urban commercial banks are facing increased competitive pressure. At the same time, China will further improve the capital regulatory standards of commercial banks, and how the changes in regulatory requirements affect the earnings of city commercial banks is worth exploring. Therefore, this paper uses the financial data of 24 listed city commercial banks in China from 2011 to 2021 to study the impact of the capital adequacy ratio on their earnings. The empirical results show that there is a significant negative correlation between the capital adequacy ratio and the return on equity, indicating that the increase in capital adequacy ratio weakens the income level of listed city commercial banks.

Tingting Huang. Research on the Influence of Capital Adequacy Ratio on the Income of Chinese-Listed City Commercial Banks. Academic Journal of Business & Management (2024) Vol. 6, Issue 3: 100-106. https://doi.org/10.25236/AJBM.2024.060312.

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