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A Research Into Chinese Security Company's Capital Adequacy

Posted on:2006-10-16Degree:MasterType:Thesis
Country:ChinaCandidate:S L LiuFull Text:PDF
GTID:2156360152991396Subject:World economy
Abstract/Summary:PDF Full Text Request
Accompany with the Chinese stock market continuously overcast, the management condition of the stock company is also getting worse and worse. Meanwhile, various risk that stock company faces starts to appear. The deep reasons that the crisis breaks out in stock companies are mainly the poor capital quality, the unreasonable capital structure and a small quantity of registered capital, which leads to the serious shortage of the capital adequacy so it is hard to resist the market impact of abrupt risks.The equity of financial institution is affluent to venture capital, which can be referred to as the capital adequacy. The adequacy has two meanings: one is that equity can resist the risk of the venture capital; Two is that the amount of equity must be moderate, or it will influence the business of the financial institutions and the capital expansion.The principle of the capital adequacy of the stock company in each country is based on the provision of ((Basel Agreement)) to the capital adequacy. At present, Most of the foreign banks run in a style of mixed operation, so the provisions of banks are suitable to the stock companies. There are two parts that each country prescribes to the capital adequacy of the stock companies: one is the basic provision-capital-to-total capital ratio— is 8%; Two is the core index of the capital adequacy — net capital and method. When the net capital is calculated, all kinds of capitals, which the stock companies hold, must be discounted in term of capital liquidity and risk. The difference in the supervision of the capital adequacy is mainly the method of net capital the category of venture capital and discount.The supervision of the capital adequacy in our country is based on the foreign experience, while there are differences in the supervision theory the method of net capital and the discount of venture capital. Firstly the writer describes the difference between home and abroad, then advises to set up the supervision system of the capital adequacy and venture management frame based on the capital adequacy.This text is divided into five: the first chapter is to advance the question, and look back on the theory of the capital adequacy and risk management; The second chapter defines the capital adequacy, and analyzes the differences in the management of the capital adequacy between home and abroad combining the provision to the capital adequacy; In the third chapter, the writer describes the importance of the capital adequacy to the risk management in the stock companies; The fourth chapteranalyzes the foreign experience on the supervision of the capital adequacy and the internal control to financial institution capital adequacy; In the fifth chapter, the writer makes suggestions to set up the frame of risk management of capital adequacy in term of supervision and the stock companies.
Keywords/Search Tags:Capital Adequacy Ratio, Net Capital, Basel Agreement
PDF Full Text Request
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