Chinese Commercial Banks A Comprehensive Capital Management Studies

Since 1980s, Modern banking have developed rapidly which led to the diversification, complication and Globalization of bank risk. Under the impetus of deepen understanding of the function of capital, risk management needs, market demand, as well as the Basel agreement, banking pay more attention to capital and value management, and more emphasis on matching capital with risk assets. Bank capital is a prerequisite for the existence and development of commercial banks, and the amount,structure and allocation efficiency of capital determine the operation of the stability of the bank. Since 1998, the domestic banking have accelerated the pace of reform, commercial banks gradually strengthen capital constraints, but the issues is still existing such as capital concept is lacking, capital structure is irrational, capital measurement is fuzzy. With the rapid change of external policy and market environment, and the pressure of shareholders, regulators, market, creditors and competitors gradually increase, the commercial banks in China urgently need to speed up changes in capital management, thus, research and development of comprehensive capital management theory and application of the system of China's commercial bank is of great theoretical and practical significance.This paper uses finance, economics, management and other theories, as well as empirical and normative analysis, historical and comparative analysis of the combination of qualitative and quantitative analysis, macro and microeconomic analysis methods. This paper studies the bank capital, combine treasury management, risk management, regulatory management and financial management; propose the "comprehensive capital management" concept. This paper deeply analyze the theoretical basis of China's commercial banks capital management, as well as current and future external markets and regulatory environment, build effective and forward-looking comprehensive capital management system of China's commercial banks, provide the scientific basis of theory, specific measures and system framework for domestic commercial bank to gradually implement comprehensive capital management models.This paper is divided into eight chapters. The first chapter introduces purpose of this paper, background and significance of topics, puts forward the research ideas and main points based on the study of literature. The second chapter proposes the conceptof comprehensive capital management from the capital characteristics and the angle of stakeholders, further analyze theoretical basis of implementation of comprehensive bank capital management, mainly involving capital structure, risk measurement, capital allocation and the new Basel Accord requirements, etc. The third chapter introduces the current situation and existing problems of the commercial banking capital system, capital structure, regulatory capital and economic capital management. The fourth chapter studies comprehensive capital management and corporate governance framework, analyzes the construction of comprehensive of the capital management system of commercial banks, based on the internal consistency of comprehensive capital management with maximizing the bank value .The fifth chapter studies the one of main elements of comprehensive capital management -available capital planning, analyzes the choice of capital tools such as interests, debt and hybrid tools, and studies the planning, mobilization and use of capital funds. The sixth chapter studies bank risk measurement issues mainly from the internal risk management and external bank regulatory perspective, including the measurement and use of credit risk, market risk and operational risk. The seventh chapter discusses the economic capital connotation and implementation strategy, studies the theory and application of the allocation of capital, on the basis of the capital planning and risk measurement. The eighth chapter is the full text of summing up and prospect.Concluding remarks, the paper proposes the effective management of the bank capital should be a core position in the bank management, based on the function of the bank capital and the scarcity of capital. China's commercial banks need to achieve from the traditional financial management to the operation and management of capital, from the bank regulatory capital to economic capital development, from the book capital to the capital allocation and performance evaluation, gradually realize comprehensive bank capital management. Bank comprehensive capital management is not only simple management of a particular capital, or to deal with external supervision of regulatory capital management, or an algorithm of internal risk and performance, but a management system including 3 large parts- available capital planning, venture capital measurement, economic capital allocation, to maximize the bank value.Based on the studies of the optimal level of capital planning, risk measurement and capital allocation, such as research, the paper provide useful management information for China's commercial banks, which is of important theoretical and applicable value. The paper have several innovations :(1) studies comprehensive capital management of China's commercial banks, based on internal bank management and stakeholders perspective, which made up for the scarcity of domestic theoretical study. (2)innovatively proposes "comprehensive capital management" concept, structures a suitable, looking and feasible framework, based on the existing bank capital theory and practice, with the development of China's banking industry status and trends, which made useful exploration for the construction practice of capital management system of China's commercial banks .(3)combined with the status of China's commercial banks , uses "top-down" and "bottom-up" two categories of tools for quantitative analysis and applied research, studies deeply the bank capital management technology which suited China's national conditions.