The Study On Countermeasures Over Implementation Of The New Capital Accord In China's Banking Industry

Imbued with the advanced idea of risk management and the current standard of the supervisory practice, the New Basle Capital Accord was implemented in the Group of Ten countries at the end of 2006 . In accordance with its commitments on accession to the WTO, Chinese banking industry opened foreign investment at the end of 2006. It will confront fierce competition from domestic and abroad and be challenged by the New Basle Capital Accord. It is significant that the paper research how to implement New Basle Capital Accord in Chinese banking industry under the background.First, the paper introduces the evolution, the fundamental content, and the innovation of the New Basle Capital Accord; then explains the New Basle Capital Accord's requirement in ideology, technology, supervisory level, employees'ability and so on. Second, the paper suggests that Chinese banking should draw on the successful experience from which the other districts carried out the New Basle Capital Accord. Third, commercial banks in china meet the requirement of the New Capital Accord, many questions should have to be solved, including poor asset quality, weak profits, the low capital adequacy, imperfection in the internal system of assessing risk and so on .Fourth, through analyzing the relationship between Chinese development and the drawbacks of banking industry and the financial market, the article points out the key point to carry out the New Basle Capital Accord step by step especially. At last, after deep discussion of the main difficulties confronted in carrying out the New Basle Accord, the author gives full suggestion to cope with the challenge from the New Basle Accord .