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Abstract
Based on the panel data of 40 Chinese commercial banks from 2004 to 2019, this paper tests em- pirically the relationship among business cycle, banking market structure and capital buffer using the method of GMM. The results show that in China: capital buffers fluctuate over the business cycles counter cyclicality, and market concentration shows a negative relationship with the capital buffers. The decrease of market concentration enforces the countercyclical behavior of capital buffers.