Reserch On The Capital Supervision Of Commercial Banks In China

Banking is a special and high-risk industry. The financial crisis which brought by the failure of banking operation has a significant impact on the world economy. The international financial market was not stable and had more risks in 1990s. A series of serious international finance events took place such as financial crisis in east and south Asian countries which had bad effect on the financial institution, financial market and the economic development. The governments and the administering authorities all over the world have already reached an agreement to strengthen the supervision and the management on financial institution to maintain the safety and stability of the financial system under the circumstance of unsteady world economy and finance.Capital supervision is the core of the banking supervision. A series of capital supervision measures such as minimum capital requirement can reduce the probability of individual bank failure and improve the safety of the banking industry. It is a main task to keep the capital adequacy rate match with the risk for the commercial banks according to the New Basel Capital Accord. Therefore, research on how to carry out effective capital regulation on commercial banks is of great significance.This paper analyzes the actuality of capital supervision of china commercial banks and presents some advice to improve it based on the explanation of the importance and the requirement of the New Basel Capital Accord. There are four chapters in this paper. The first chapter presents the research background and the capital regulation theories. The second chapter describes the history and reality of government supervision on capital management of commercial banks. The third chapter analyzes the existent problems in capital regulation. According to the Guidance of Implementation of Basel II of Chinese Bank Sector, the market economy environment is imperfect and the measures of capital supervision lagged, such as the management information system and the risk management techniques .The forth chapter put forward some advice to perfect the government function to regulate the capital management of commercial bank by use the experience of other countries for reference. It points out that both government and the commercial banks should consolidate the capital management and improve the exterior and interior capital supply conditions for banks based on both the reality of China and the New Basel Capital Accord. They are the effective means to improve the competitiveness of the commercial bank and maintain international financial stability.