The Basel III Accord takes macroprudential measures as an important approach to prevent financial systemic risks. Since China established the Macro Prudential Assessment (MPA) system in 2016, it has continuously improved the macroprudential policy framework. Nowadays, macroprudential policies have become an important means for China to deal with financial systemic risks. Macroprudential policies enhance the risk - bearing capacity of commercial banks through capital - related policy tools, which affects the operation mode and development direction of commercial banks to a certain extent, and thus has an impact on the performance of commercial banks. This paper selects the data of 136 commercial banks in China from 2013 to 2022 for empirical analysis, examines the impact of macroprudential capital constraint policy tools on the performance of commercial banks, and through the mediating effect test, finds that capital constraints can improve the performance of commercial banks by controlling bank risks.

Liangyu Dong. The Impact of Macroprudential Capital Constraints on the Performance of Commercial Banks. International Journal of Business Management and Economics and Trade (2024), Vol. 6, Issue 1: 11-22. https://doi.org/10.38007/IJBMET.2025.060102.

[1] Erna S., Suhadak S., Mangesti R.S., et al. The effects of Tier-l capital, riskmanagement, and profitability on performance of Indonesian Commercial Banks[J].International Journal of Law&Management,2018,60(5):1074-1086 https://doi.org/10.1108/IJLMA-05-2017-0109

[2] Hans Gersbach. Basnk capital and the optimal capital structure of an economy[J].European Economic Review,2013,78(64):22-25. https://doi.org/10.1016/j.euroecorev.2013.07.010

[3] Huang Q. Ownership Concentration and Bank Profitability in China [J].Economics Letters, 2020.https://doi.org/10.2139/ssrn.3684066

[4] Z.Yakubu,A.Y.Affoi. An Analysis of Commercial Banks' Credit on Economic Growth in Nigeria[J]. Current Research Journal of Economic Theory,2014,(2):11-16 https://doi.org/10.19026/crjet.6.5531

[5]  Malkawi B.Digitalization of Trade in Free Trade Agreements with Rreference to the WTO and the USMCA: A Closer Look[J].China and WTO Review,2019,5( 1): 149-166.https://doi.org/10.14330/cwr.2019.5.1.07

[6] Susan Ariel Aaronson.2016. The Digital Trade Imbalance and Its Implications for Internet Governance[J].Global Commission on Internet Governance (25):1-40.https://doi.org/10.2139/ssrn.2813392

[7] Maudos J. Market Structure and Performance in Spanish Banking Using a Direct Measure of Efficiency[J]. Applied Financial Economics,1998(08) https://doi.org/10.1080/096031098333177

[8] Garcia-Herrero A, Gavila S,Santabarbara D. What Explains the Low Profitability of Chinese Banks[J].Journal of Banking and Finance,2009(11) https://doi.org/10.2139/ssrn.1413123

[9] Agarwal V,Taffler R.Comparing the Performance of Market-based and Accounting-based Bankruptcy Prediction Models[J].Journal of Banking and Finance,2008(08).https://doi.org/10.1016/j.jbankfin.2007.07.014

[10] Demirguc-Kunt A,Huizinga H.Determinants of Commercial Bank Interest Margins and Profitability:Some International Evidence[J].World Bank Economic Review,1999(13).https://doi.org/10.1596/1813-9450-1900

[11] Carbo Valverde S,Rodriguez Fernandez F.The Determinants of Bank Margins in European Banking[J].Journal of Banking Finance,2007(31).https://doi.org/10.1016/j.jbankfin.2006.06.017

[12] Pasiouras F,Kosmidou K.Factors Influencing the Profitability of Domestic and Foreign Commercial Banks in the European Union[J].Research in International Business and Finance,2007(21).https://doi.org/10.1016/j.ribaf.2006.03.007

[13] Sufian F,Habibullah MS,Determinants of Bank Profitability in a Developing Economy:Empirical Evidence from Bangladesh[J].Journal of Business Economics and Management,2009(10)https://doi.org/10.3846/1611-1699.2009.10.207-217

[14] Minsky Hyman P.Longer waves in financial relations:financial factors in themore server depressions I[J].Journal of Economics Issues.1995.29(3):83-96 https://doi.org/10.1080/00213624.1995.11505642

[15] Kregel J.A.Margins of Safety and Weight of the Argument in GeneratingFinancial Fragility[J].Jourmal of Economic Issues.1997.7:543-548 https://doi.org/10.1080/00213624.1997.11505945

[16] Bemank,B.and Gertler,M."Financial Fragility and Economic Performance"J].Quarterly Journal of Economics.1990.105(1):87-114 https://doi.org/10.2307/2937820

[17] Leigh Drake,Maximilian J.B.Hall.Effciency in Japanese banking:An empiricalanalysis[J].Journal of Banking &Finance.2003.27.891-917https://doi.org/10.1016/S0378-4266(02)00240-6

[18] Diamond DW,Dybvig PH.Bank runs,deposit insurance,and liquidity[J]Journal of Political Economy 91(3):401-419.https://doi.org/10.1086/261155

[19] ]Minsky H P. The Evolution of financial institutions and the performance of theeconomy [J]. Journal of Economic Issues, 1986, 20(2): 345-353. https://doi.org/10.1080/00213624.1986.11504505

[20] Asili Demirguc Kunt,Enrica Detragiache.The Determinants of Banking Crisesin Developing Countries[R].IMF Staff Paper,1998,45(1):3.https://doi.org/10.2307/3867330

[22]Williams B,Prather L.Bank risk and return:the impact of bank non-interestincome[J].International journal of managerial finance,2010,6(3):220-244.[5]Wilson T.C.Portfolio Credit Risk[J].Economic Policy Review,1998,3(4):7-82.[6]Demirgüc-Kunt A,Huizinga H.Financial structure and bank profitability[J].World Bank Policy Research Working Paper,2000(2430).https://doi.org/10.1108/17439131011056233

[23]Cordy M.B.A Comparative Anatomy of Credit Risk Models [J].Journal ofBanking&Finance,2000,24(1-2):119-124.https://doi.org/10.1016/S0378-4266(99)00054-0