Research on influence factors of commerical bank's capital adequacy ratio

In this article, a Multi-Regression Model is established to analyze the interrelations among those influencing factors related to the capital adequacy ratio (CAR) of banks based on some cross section data of 17 commercial banks in China from 2000–2006. It is found that the CAR is in positive correlation with bank capital and profit, assets income ability, historical influence and securities market but in negative correlation with the loan concentration ratio of banks.