Research On Legal Problems Of Regulating The Bank Under The New Basel Capital Accord

It is well known that a steady and effective financial system is very important to stabilization and sustainable development of macro economy. The New Basel Capital Accord issued by Basel committee in June 2004 will be applied worldwide from 2008 to 2011. Its function is to strengthen bank's ability to resist the risk of unexpected accidents. Although the New Basel Capital Accord is not nomologically effective, the practice of international finance is not simple as legal theory. Because Basel committee plays an very important role in fields of international economy and finance and makes efforts in regulating international finance and obvious achievements, and moreover globalization and complication of economy and finance strengthened international financial competition and led to frequent outburst of financial crises, which made the authorizations in charge of regulating banks of all the countries realize the necessity of forming international uniform and harmonious regulating standards and system, Basel committee became the most authoritative bank organization in cooperation and coordination of international financial regulation. The series of documents published by Basel committee are regarded seriously or supported by these authorizations. They are changed into effective financial provisions or executed in practice in these countries. China Banking Regulatory Commission had vended that the commission would still apply the 1988 Basel Accord before the whole bank system is ready for the new accord. Meanwhile under the advanced management ideas China Banking Regulatory Commission has strengthened to regulate the risk and inner management of banks. Therefore, in the future the trend is that regulating the credit risk of banks will be under the requirements of The Basel Capital Accord.As the title can be seen, the perspective of the author is that some legal measures that Chinese government should use before the Basel Capital Accord is gradually applied worldwide were argued in this paper. Based on this, the analysis and arguments are as follows.The first chapter is about common theory of the New Basel Capital Accord. After explaining the two accords,the Basel Capital Accord and the New Basel Capital Accord .From the comparison, it is concluded that the nature of regulating provided in the Basel Capital Accord is dynamic and active regulating.The second chapter is about the legal analysis of the New Basel Capital Accord and the legal effect of the New Basel Capital Accord. The Accord can not take effect but it has to be observed in china. The regulation of bank credit risk is legally analyzed from the three stanchions of the Accord.The third chapter is about the application of the New Accord in Chinese legal system. First, the regulation modes of different counties who have applied the Accord are classified and compared and those China Banking Regulatory Commission should use for reference is picked up. Then according to the three stanchions of the Accord, how to deal with the New Basel Capital Accord for reference in drawing legal documents in China is offered.The fourth chapter is about the clue of improving legal system of Chinese bank risk regulation. This is the important part of this paper. The author wrote a lot how to perfect the legal system form the three stanchions which are capital adequacy ratio, the regulator and the disclosure of bank information.