Study Of The Capital Adequacy Regulation Of The Commercial Bank In China

The Basle Capital Accord of July 1988 resulted from the discussions and researches of international banking supervision by the Basle Committee. It integrated the quality of banks capitals into the quality of them by requiring adequate capital in accordance with the risks of their assets, so have deeply influenced the capital management of commercial banks. The New Capital Accord was published in 2004, Compared with the original Basle Capital Accord, the new one attaches more importance to banks' inside system of assessing risks than to the capital adequacy, and emphasizes the supplementary role of Supervisory Review of Capital Adequacy and Market Discipline. The New Capital Accord requires the according capital of all risks including credit risk, market risk and operational risk, and puts forward a series of progressive methods of measuring the capital which can be flexibly choose by banks.If commercial banks in china meet the requirement of the New Capital Accord, many questions must be solved. At 2004, a regulation named Regulation Governing Capital Adequacy of Commercial Banks was formulated for the purpose of strengthening the supervision of capital adequacy in commercial banks. The regulation is more nearly with the Basle Capital Accord of 1988 than the New one. In order to cope with the challenge from the internal and international financial market, the government, CBRC and commercial banks in china should make full use of the advanced managing experience of international banking, raise capitals by all possible means, make capital structure perfect, set up system of risk management, and improve the capability of supervision, accord with the New Capital Accord as soon as possible, enhance the advantage of commercial bank of china in competition.