The Research About Effect On Bank Behaviors Under The Basel Capital Adequacy Ratio Supervision

Basel Capital Accord has been published since 1988, and used for supervising the banks of GlO.The process gradually was accepted by banks all over the world as a guile line. The New Basel Accord was collect many suggestions and amended until 2004, it has provided a more exact frame of the Capital Adequacy Ratio (CAR) supervision. During the practice of financial reform, the CAR is an important act regard by the supervision authorities, for our banking industry is urgently open to the foreigners. The computation of capital requirement is an international standard for our banking reform.The paper is dividing into three parts: the Capital Adequacy Ratio supervision, bank behaviors and reengineering the bank. The second chapter is under the CAR supervision, firstly introduces three pillars and new methods of capital requirement, and then combined with our situation with data to survey the shortage of capital problems. Secondly it according to the core conception of Basel it is to push banking and take the complete risk-management in to practice, but our banking management system is disparity from and has to improve that. Thirdly I analyze the Basel influence to the small-medium banks. The third chapter is to explain the bank behaviors through the schedule; our banking shows different behaviors during different time and makes our banking system fragile. According to the research results based on the study on the problems caused by CAR supervision of other countries, and use the model to prove the potential credit crunch and credit concentration, and then get use of the SCP analytical model, bring forward the necessity to make a reengineering to the banking of our country. The forth and fifth chapter is based on the concept of reengineering the bank and accept some reform cases that is similar with the situation in our country, and sum up the experiences in the banking reform of those countries .In the chapter 5, they put forward the concept of reengineering the bank, and finally make the more competitive reengineer banks join in the global banking market.