A Study On The Capital Management Mechanism Of Chinese Regional Commercial Bank

During the past 30 years before China's reform and opening-up, due to the unified financial system under the planned economy, it is impossible and unnecessary to study the capital management mechanism of the commercial bank. The concept of core capital and subsidiary capital was put forward in 1994 for the first time in China, and in 1995, the minimum of registered capital and the capital adequacy rate of commercial banks were regulated, which symbolized the reform and construction of the commercial banks' capital management mechanism has entered a new stage in China. After being admitted to WTO in 2001, the commercial banks in China began to face directly the challenge and competition of those Western ones. Therefore, for the commercial banks in China, it is of much significance both in theory and in practice to study the capital management mechanism of the western commercial banks, the Basal Agreement as well as the new capital agreement, to construct the framework of the capital management mechanism of regional commercial banks in China, and to establish the complementary channel of capital.In this dissertation, we study the innovating mechanism of the capital management of those regional commercial banks in China. We research into the status quo and existing problems, and hence study the connotation of bank capital, the deciding factors, and the concrete paths on how to strengthen the capital management for regional commercial banks in China.Seven parts are included in this dissertation. In the first part, we put forward the significance of this research, and set forth the subject, the structural arrangement and the main innovations. In the second part, we review the related domestic and overseas literature. In part three, we introduce the basic theory of the commercial banks' capital management, set forth the developments of the theory of bank capital management, analyze the structure of bank capital, and define the function of bank capital management. In part four, we review the variance and actuality of the capital management mechanism of the regional commercial banks in China. In part five, we study the capital management mechanism of the regional commercial banks in China, which includes the capital-raising mechanisms, the capital constraint mechanism, the risk precaution mechanism, the mechanism of innovation with the structure of property right, and the international cooperation mechanism. In part six, we present a case study on the innovation of the regional commercial bank's capital management mechanism. In the last part, we sum up the innovations and shortcomings of this dissertation, and prospect the directions for further study.In this dissertation, three innovations are put forward. Firstly, we choose a new view of the regional small and medium-sized commercial banks to analysize the major content of the banks' capital management. Secondly, we put forward four important factors which influence the capital adequacy rate the most, such as financing cost, the extent of risk aversion, asset size and the uncertainty of operation. Thirdly, we summarize and define the capital management mechanism of the regional commercial banks in China, including mainly the capital-raising mechanisms, the capital constraint mechanism, the risk precaution mechanism, the mechanism of innovation with the structure of property right, and the international cooperation mechanism.