Legislative Analysis Of Capital Adequacy Ratio For State-owned Commercial Banks

The commercial bank, as the intermediary between the depositor and the debtor, its capital adequacy ratio (CAR) is the attribute of the bank credit From long ago, the CAR of our state-owned commercial banks have been low, by taking the substitution by"high government credit"The government becomes finally withstander once the bank suffered the loss or the risk The capital has not received enough takes With china's entering into the WTO and the foreign banks'entering, the state-owned banks will obey international financial market rules Then, it becomes an essential choice that reconstruct the relations between the State-owned banks and the government, and enhancing the capital adequacy ratio is still an essential choice In view of this kind of situation, China Bank Regulatory Commission issued Regulation Governing Capital Adequacy of Commercial Banks in 2004, introduced officially the Basel committee about the lowest capital's request—8﹪This article mainly elaborate contents below—the present situation, the signification of the level of CAR, as well as the way of enhancing the CAR—at the legal angelThe first chapter: Giving an outline of the commercial bank's CAR The capital is multipliable value The capital of commercial bank is composed of own capital and capital from debtors, and the debt may become the capital in the specific situation There are different between Regulation Governing Capital Adequacy of Commercial Banks and Basel Capital AccordsⅠandⅡDue to the difference of the national capital and the private capital, the CAR of stated-owned commercial banks should keep a little higher level in the foundation of maintaining the fluidity of banks, but its level cannot too highThe second chapter: The CAR of state-owned commercial banks in our country is unoptimistic Why? The first reason is the special status of State-owned commercial banks The second reason is special legal...