Study On The Capital Adequate Ratio And Capital Management Of Commercial Bank

Capital is held by banks or financial supervisory departments require to take risks, absorb operating losses and protect depositors from the risk of loss of capital that banks set up to meet the basic needs of investors and assume debt obligations and the basic investment funds. From the above we can see the definition of capital has two major roles: First capital, the banks may be able to guarantee their normal business. Second , the accident occurred in the bank can use capital losses to offset play the role of "buffer" role. Whether an appropriate set of indicators to measure the capital adequacy ratio is the capital, the capital adequacy ratio is the lifeblood of modern commercial banks, commercial banks maintain adequate capital levels are the basic conditions for survival and development. Internationally, in 1988 the "Basel Accord" is the West "Group of 10" in the international banking supervision to discuss the many issues the conclusion formulated. The agreement highlights the capital adequacy ratio standards and the significance of the agreement will require capital assets and the risks linked to the commercial banks have had a profound impact on capital management thinking. 2001 New Basel Capital Accord framework to continue the 1988 Basel Accord with the capital adequacy ratio as a core and credit risk control as the focus, highlighting the country risk the risk of regulatory thinking, and then the measuring capital adequacy ratio of new ideas and methods to enable the capital adequacy ratio and risk management measures to better adapt to the current developments in the international financial markets by 2005. Compared with the original agreement, a new agreement to maintain minimum capital adequacy ratio requirements, the bank will expand the scope of monitoring credit risk, market risk and operational risk, and a set of flexible options for the risk-rating methods. In our country, due to historical and practical reasons, the country's commercial banks lack the sense of the Capital Management. With the development of economic and financial globalization, and China becomes a member of the World Trade Organization in accordance with the commitments it has made the request to speed up and deepen the reform of the financial system to cope with the new challenges of the objective requirements. Financial reform is one of the key reforms in the banking system, specifically including the disposal of non-performing assets, supplementary capital, and improving the corporate governance structure, the promotion of the shareholding reform of banks and so on listed. My focus is the issue of outstanding asset and liability management and capital management neglect. And...