Construction Of The Supplementation Mechanism Of The Capital For Chinese Commercial Banks

Before 2003, capital adequacy ratio of our country commercial banks had went back and forth below 8%. But since 2004, after the announcement of "The Capital Adequacy provision of the commercial banks", most of Chinese commercial banks only use less than 2 to 3 years to achieve the lowest requested capital adequacy which is 8%, and even attaining the same level with advanced international banks. But it's well known that financial system and the management system of commercial bank of one country can't be improved significantly in a short time, because they are restricted by the economic environment, techniques, personnel's character, the corporate culture etc. Therefore, the purpose of this study is to investigate the root cause of the rapid increasing of the capital adequacy of Chinese commercial banks, and discover the latent risk and problems, then put forward the suggestions on the construction of the supplementation mechanism of the capital for Chinese commercial banks under current economic situation, which is the largest dissimilarity between this text and previous related researches.The 8 years economic ascension granted the reform of Chinese commercial bank a long and suitable environment to promote the capital adequacy. The fast expansion of financial credit, fast accumulation of the capital and the steady promotion of the assets quality is the basement of the promotion of capital adequacy for Chinese commercial banks. But on the other hand, after carrying out meticulous analyzing on the current situation of the capital adequacy supplementation mechanism, we have discovered that the fast promotion of the capital adequacy of Chinese commercial banks covers the defects of the replenish mechanism, Such as capital adequacy ratio standards in the course of the government's excessive reliance on capital injection, the fake high level of the capital adequacy ratio under the macro-control policies, the narrow and instable source channels of capital accumulation, external capital replenishment channels instability and etc. If these defects are not taken seriously and appropriately attention in present, they may break out in the decline phase of the economic cycle, and finally endanger the operation security of Chinese commercial banks. The article summarizes China-foreign commercial bank capital replenishment mechanism theory which has established a basis for the following discussion, then analyzes Chinese commercial bank in depth in recent year's minimum capital requirement abundance rate changing process, with the home and abroad economic situation and the change of the economic policies in our country, we conclude that the replenishment mechanism of capital for commercial banks is still not perfect, even though the capital adequacy ratio has got notable improvement. Finally it aims at putting forward referent suggestions according to those various blemishes.