The Influences Of The Basel Capital Accord On China Banking Supervision System

The Basel capital accord is the result of the development and competition of the banks all over the world, which is about supervising the commercial banks' capital. The Basel accord (edition 1988) is the first one to norm the capital of banking. With the finance innovation and risk management deepened, the Basel capital accord needs updating as well: it is more scientific, more detailed, and more rational than the old version. After several times of revision, the minimum capital requirement first come into effect in the Basel Accord, have formed the new Basel capital accord, a more prudential capital adequacy framework. At present, its main contents are made up of three pillars that are "the minimum capital requirement"; "the supervisory review"; and "the market discipline". The core function of commercial banks' capital is to cover the unexpected loss induced by all kinds of uncertainties during banking operation. In a word, the new version stands for the development of the international banks' capital supervision; also means the commercial banks must enhance to bank's capital, and further the level of the risk management ability.The new Basel capital accord that takes into practice will bring the different degrees of impact. But our country, as one of the member of international settlement countries, must conduct and adjust banking management according to the frame of the new Basel capital accord. Therefore, the new capital accord would not only provide our country many new principles with scientifically operational method, but also need some reformation, for which the banking system of our country is not perfect. This text analyze the new Basel capital...