Research On The Legal Problems Of China's Bank Capital Supervision Under New Basel Accord

Against the background of financial globalization and continuous development of financial innovation,banking system faces greater risks. The capital adequacy is the foundation for commercial bank's normal operation and it is an important method for commercial banks to supervise risk.Basel Committee published the New Basel Accord (Basel II) on 26 June 2004, this New Accord succeeded on some merits of bank capital supervision in old Basel Accord (Basel I) in 1988. However, Basel II proposed a more rational approach to evaluate capital requirements by integrating minimum capital requirements, extern supervision and market self-discipline, which only depends on capital requirements in Basel I. Compared with Basel I, some new evaluation and approaches presented in Basel II can more appropriately meet requirements of current finance market. This achievement aforementioned in Basel Committee is that obtained from the experiences of some international bank risk managements, moreover, it also explores the future direction of banking supervision. Capital supervision can develop steadily and healthy, and it reduces the financial risk of the whole bank system. Therefore, more and more countries and areas have all accepted New Basel Accord, and brought it into their commercial bank supervision law system.The New Basel Accord regards promoting safety and stability of the financial system as its leading ideas. In order to catch up with the international market and protect China's commercial bank from financial risks, our country has given a promise to supervise China's bank according to the New Basel Accord. However, there are many difficulties for China promoting New Basel Accord in whole country. Therefore, we must analyze existing China's commercial bank supervision system based on China's realistic situation, and study those successful experiences abroad. The proper supervision law systems for China's banks should be set up in order to keep away and get rid of the banking risks, improve the supervision management for China's banks, promote the development for China's banks, and increase the competitive ability. All of these would bring far-reaching results for the banking system of China.