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Normal Research On The Information Disclosure Of Commercial Banks

Posted on:2004-10-04Degree:MasterType:Thesis
Country:ChinaCandidate:L T LiuFull Text:PDF
GTID:2156360092491386Subject:Accounting
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The financial crisis of Asia in 1997 told us that a good information disclosure system (IDS) of commercial bank is beneficial to the avoidance of financial crisis. The information disclosure of commercial banks as special enterprises is of great importance to not only the society, but also the development of banks themselves.With China's entry into the WTO, it is essential for commercial banks in China to melt into the world financial system and follow the international practice of disclosing information to public. On May 21, 2001, the People's Bank of China promulgated "Temporary Regulation on Information Disclosure of Commercial Banks". It laid the foundation for the construction of information disclosure system of commercial banks in China. But compared with international practice, it has lots of shortages. The research on international practice helps to find out the difference and to improve the system. This thesis includes three parts.Chapter 1 is international research on information disclosure of commercial banks. Firstly, we study related accords (documents) of Basel Committee. Particularly attention has been paid to "The New Basel Capital Accord" ("The New Accord") promulgated in 2001. Compared with former accords (documents), the new one has several innovations featured by the introduction of capital market's three pillars: minimum capital requirements, supervisory review and market discipline. We attach great importance to the content of pillar 3 by introducing in detail the specific requirements for commercial bank's information disclosure in the new accord. Secondly, seeing the fact that the information disclosure systems are popular in commercial banks all around the world, we make a thorough comparative analysis of different contents requirement, procedures and supervision mechanisms on the basis of different laws of banks. By doing this, we try to find out the differences among various IDS of world's major nations (regions).Chapter 2 is intended to research the IDS of commercial banks. Commercial banks in China could be classified as listed and non-listed ones in line with their different requirement on information disclosure. The investigation is well lined with the "Temporary Regulation" on information disclosure of non-listed banks. Firstly, we examine the former IDS before the issuing of "Temporary Regulation" and point out the setbacks such as simpleness, disnorm and lacking of restrictive mechanism. Secondly, we pay special attention to the great significance of the Chinese new IDS by examining and concluding the main contents. Thirdly, we analyze the information disclosurerequirements included in the series of statements issued by China Securities Regulatory Commission and examine the behavior of Chinese listed banks in the process of enforcement.With reference to international experience, suggestions have been made in the third chapter to complete and make perfect the IDS of national commercial banks. Firstly, we think that "The New Accord" is of instructive significance to Chinese commercial banks' off-balance risk disclosure improvement because Chinese new IDS still lack enough qualitative and especially quantitative disclosure. Therefore, we suggest that China should take measures to enhance the disclosure standard level of risk evaluation and risk control and to farther improve information disclosure standard. Secondly, we suggest that Chinese banks should take possible measures to carefully and exactly enforce the new IDS at present stage. We also offer same specific and important consideration to facilitate Chinese commercial banks' action. Thirdly, we realize the accounting standards' difference between Chinese and foreign banks. We think that these differences have reduced the fullness and accuracy of Chinese commercial banks' information disclosure. Therefore, we evaluate two relevant statements issued respecting in Nov 27, 2001 and Dec 5, 2001 about Chinese banks' accounting practices. We also put forward some suggestion to improve these practices such as bad debt...
Keywords/Search Tags:commercial bank, information disclosure, Basel Accord
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