Font Size: a A A

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

Posted on:2010-01-20Degree:MasterType:Thesis
Country:ChinaCandidate:D LiFull Text:PDF
GTID:2166360275485997Subject:International Law
Abstract/Summary:PDF Full Text Request
Basel Capital Accord (called"Old Capital Accord"below) is called"The Holy Treaty"in the bank supervision of international. Old Capital Accord put forth a new philosophy of bank supervision, and it be accepted by many country. But the World wide Banks` management condition has changed due to the economy environment reconstruct. In order to accommodate this change, the creative actions of bank become more active as before. Old Basel Accord emerged and been constant perfection.Ultimately,"The New Basel Capital Accord"(called"New Capital Accord"below) formed, It` s the highest achievement of the banking supervision theory up to now. The New Basel Capital Accord provided a new standard of banking supervision for all banks in the world through built on Internal Rating System. Minimum capital requirements, external supervision and market discipline depressed the credit risk, market risk and operation risk. New Capital Accord makes supervision authorities transition from passive supervision mode to active mode. This changed meet the demands of the banking industry in supervision area.The Basel Committee constitute by group of ten, they represent active banks in the world. So, the criterions and standards write in New Capital Accord be adopted by many countries gradually, due to which scientific supervision idea and effective practical experience. Obviously, these criterions and standards no compulsory, but because it has been adopted widely, therefore which endowed with the character of International Economic Law. Different nation has different economy environment and supervision condition, especially in developing countries. So, their supervision idea, level and method are different from each other. Therefore, under the trend of financial global integration and international banking supervision standard unification, how to implement the New Capital Accord based on self condition becoming the first problem considering by developing country banking supervision departments.With China entering WTO and foreign banks set foot in Chinese market. Chinese financial market and international financial market increasingly close. Be developing country, Chinese should line with international practice. But because of many reasons, Chinese banking supervision condition is not optimistic. Low bank capital adequacy, supervision idea lag, and related system distempered etc. Thus, our national supervisor should learning and reference advanced international experience. At same time, establishing and perfecting our banking supervision system.My article contrast the Old Capital Accord and New Capital Accord at beginning,, On top of that, I showed the advantage of the New Capital Accord in many aspects, like supervision target, contents and method. Then, I analyzed the New Capital Accord` s legal nature with law angle. And analyzed the New Capital Accord` s effectiveness and hysteretic nature linked with global financial crisis broken up lately. After that, I contrasted and analyzed the existing circumstances of developed countries and developing countries, especially surveyed Chinese banking supervision legal system` s deficiency through study the New Capital Accord. Finally, my article point out the necessity and the key to our country implement the New Capital Accord based on other countries` advanced experiment. My viewpoint is that, internal and external supervision should be combined. Information disclosure system must play bigger role in market supervision. Our country should improve supervision level to supervision domestic bank and foreign bank, meanwhile, perfecting internal corporate governance structure according to Chinese banking supervision condition. Only in this way, Chinese financial market could have more capacity to cope with the financial risk.
Keywords/Search Tags:Bank Supervision, The new Basel Capital Accord, Financial Crisis, System Construction
PDF Full Text Request
Related items