The Research On The Basel Agreement â…¢ And China's Banking Regulation

This paper based on the revision and issue of the Basel agreement â…¢ for clues to analyzethe regulation of the Basel agreement â…¢ to China's banking system, the paper gave acomprehensive analysis around the influence of the Basel agreement â…¢ to China's bankingindustry, construction of China's banking macro prudent supervision system, cross-borderbank supervision and the influence of the Basel agreement to our rural financial supervision.This paper also regarded building macro prudent supervision as a key content, it analyzed theimportant influence of the Chinese banking stability. Based on the status of the developmentof China's banking industry, through previous main contents of all the Basel agreementsmodified, this paper put forward important opinions and suggestions that the financialregulators should do what on the basis of following the Basel agreement â…¢ to theconstruction of Chinese macro prudent supervision system framework and full play in thebanking industry to promote the economic development.The purpose of this paper was to reveal the new changes of the Basel agreement â…¢ andthe impact to China's banking industry, and put forward new ideas of our country bankingsupervision under the framework of the Basel agreement â…¢. The analysis method of paper isfrom theory to practice, and from point to face. This Article not only analyzed the significanceof Basel agreement to strengthen global banking business risk supervision, but also studiedthe problem of banking sufficient capital, macro financial prudent supervision and other hotproblems in the Basel agreement in particular.This paper had a structure system of focusing on the relationship between the Baselagreement and the Chinese banking regulation. It carried on the detailed analysis from manyaspects and perspectives, such as the capital regulation, macro prudent supervision, andcross-border bank supervision. Logical sequence of this paper is from theory to practice, fromdomestic to foreign and from general finance to rural finance.Paper is divided into eight chapters, each chapter is as follows:Chapter1:Introduction.This chapter introduced the paper's purpose, significance,literature review, research methods and ideas, structure, innovation and so on. Chapter2:The perfection and evaluation of all previous Basel agreement. It introducedthe Basel committee of bank and its assessment, detailed analyzed the first, second and thirdedition of "Basel agreement" from background, process of modifying, contents and influence,and pointed out the history that Basel agreement supervised capital.Chapter3:The influence of the Basel agreement â…¢ on regulation of China's bankingindustry. It analyzed contents combining with the new changes of the Basel agreement â…¢ andthe effect of regulation on our country's banking industry.Chapter4The Basel agreemnet â…¢ and capital regulation. From "the three pillar" of "theBasel agreement" itanalyzed the capital and its supervision, the bank capital regulation andrisk management under the Basel agreement.As the core of banking supervision, we need tostrengthen capital supervision to enhance the banking supervision level in China.Chapter5:The Basel agreemnet â…¢ with the macro financial prudent supervision ofbanking in China. This chapter analyzed macro financial prudent supervision mainly from thefinancial crisis, and make further understanding of the macro financial prudent supervision.The paper proposed own view on the importance, specific measures of the financial macroprudential supervision system, the construction of China's macro prudential supervision indexsystem.At the same time, we tried to construct" too big to fail" financial evaluation indexsystem which covered inner effect (profitability, operation ability, debt paying ability andgrowth ability) and external effect (social resources, resource efficiency, industrialrestructuring and fair income).Chapter6:The Basel agreemnet â…¢ and rural financial regulation in China. It analyzedthe current problems of our rural financial supervision,such as rural financial supervisionenvironmental changed, rural financial institution's internal control, industry self-discipline,financial management and other aspects,and more focused on monitoring methods specificmeasures and other problems of " shadow banking" in China's rural finance.It needs to paymore attention on the the "shadow banking" issues in the current rural financial supervisionneed, and take positive measures to against financial risk.Chapter7:The Basel agreemnet â…¢ with the bank's cross-border regulation. It mainlystudied the international coordination problem of financial supervision, including thecooperation, specific measures, main task of cross-border bank supervision under the Basel â…¢,as well as the global financial regulatory reform.The results showed that the implementationof the Basel agreement â…¢ need coordinate the global financial regulation to improve thebanking cross-border supervision level, thereby preventing financial risk and financial crisis.Chapter8:Policy suggestions of China's banking supervision under the Basel agreementâ…¢. We put forward policy suggestions from the capital regulation, financial supervision, the rural financial supervision, cross-border banking supervision etc.The innovation of the paper has the following points: Firstly, around the core content ofthe Basel agreement, it further established Chinese characteristics capital regulation system,and creatively put forward the Chinese characteristics capital regulation. Secondly, it hadmore detailed study on the macroscopic financial prudent supervision system frame. Thirdly,itbuilt China's systematic important regulatory index of financial institutions system. Fourth isaround the new content of Basel â…¢, it presented a set of criteria and methods after thoroughresearch on the liquidity problem in China's banking supervision. Fifth is based on thebackground that the financial crisis showed relationship between the leverage and economiccycle. It proposed several lever indicator regulatory tools, in view of excessive leverage innerfinancial system.The conclusions of this paper are: in addition to the current micro prudent supervision, itneeds further strengthen and improve the bank supervision system in which the main contentis macro prudent supervision for the stability of China's banking industry with the Baselagreement â…¢. To deal with the Basel agreement â…¢'s new tasks which are the capital index,fluidity index and leveraged index for controlling systemic risk and keeping the financialsystem stability, our financial regulatory authorities need to take correspondingcountermeasures to build China's macroeconomic prudent supervision system.