| In June, 2004 the Basel Committee issued the "the New Basel Capital Accord".From this beginning, "the New Basel Capital Accord", became an official as risk management guidelines for the international banking industry. The New Capital Accord set up the three pillars of an effective supervision of the capital, "Minimum capital requirements, Supervision of regulatory authorities, and Market constraints", which representes the direction of development of risk management, enhances the risk sensitivity and flexibility of capital regulatory. It is helpful to the improvement of risk management and the impetus service innovation. The New Capital Accord by expanding the scope of risk and the strengthening of the measurement requirements further carries out banking supervision and management of various countries' banking industry. At present, there are nearly a hundred countries will be clear that the implementation of the New Capital Accord. In April 2007, China's banking sector to implement the New Capital Accord high-level Steering Committee, aimed at facilitating the implementation of China's banking sector in the process of the New Capital Accord, which shows that the development of our country's determination to the New Capital Accord. The article is carried out in this context, focusing on the challenges of China's banking industry and the measures our banking sector should be taken. The full text can be divided into five major parts:Part I: Background and significance of topics and literature review. In this part, first of all, this article briefly describes the background and the theory and practical significance of the topics. And there is a comprehensive overview of the theory of regulation, as well as domestic and foreign study for the New Capital Accord capital. Some of the study results of is very helpful to this paper and expand the idea of writing this article.Part II: An overview of the Basel Capital Accord. In this part, the main introduction is the development process of the Basel Capital Accord, at the same time ,that It is clear that the innovation of the New Basel Capital Accord.It is pointed out that the New Basel Capital Accord,on the basis of"Basel Capital Accord 1988", continues the principles of 1988 edition ,with the core of capital adequacy ratio and focusing on credit risk control. The New Capital Accord absorbs the three pillars, namely, the minimum capital requirements, supervision of regulatory authorities, and market constraints in"the core principles of the effective banking supervision, in 1997". Finally, It achieves innovations from the operational risk, IRB, supervision of regulatory authorities and market constraints.Part III: The minimum capital requirements for new development - the operational risk. In the first pillar of the New Capital Accord, a clear increase is in the specific measurement of operational risk management approach, which is one of the most important innovation in the New Capital Accord.Through the study of the data, we have get two main reasons of international banks operating, external factors caused by the banks and the practice business processes to operate of bank's internal factors. And in China,The main causes of operational risk is the internal fraud and fraud arising from collusion. Therefore, It is an important way to enhance the advance management of operational risk for guarding against operational risk. We can manage to reduce the operational risks of China's banking industry by increasing the level of information technology and enhancing the quality of bank staff and ethical business standards.Part IV: The minimum capital requirements for new development - the internal Ratings-Based Approach of credit risk. Pointed out that the internal Ratings-Based Approach of credit risk is the New Capital Accord's second Innovatation.So far, the credit risk quantification models recognized internationally include: Credit Metrics credit portfolio model, KMV EDFs credit portfolio model, CreditRisk+ credit portfolio model and McKinsey CPV credit portfolio model. Because the cost is limited, our country's implementation of internal Ratings-Based Approach mainly concentrates in large and medium-sized commercial banks. We may know IRB have the high request regarding the data quality,so it is necessary to make positive efforts in data accuracy, representativeness, consistency and the history of observation; At present we should select the data requirements at a lower model, CreditRisk + credit portfolio model. Finally, As for data collection and their own risk measurement model, the risk management department of banking industry should be required to determine a rating of the management model fitting the characteristics of us.Part V: The regulation of the regulatory authorities and market constraints for the new development. Supervision of regulatory authorities is the second pillar in the New Capital Accord. Regulatory authorities uses methods such as site supervision and off-site supervision to ensure that the banking industry sets up an effective monitoring system. Various countries' finance regulatory authorities use the different regulatory regime to carry on supervising and managing on their banking industry. Regulatory authorities also take a number of related legal measures. In the global financial crisis from 2007 to 2008, The various countries' governments and the Central Banks mainly adopt direct injection or take over the banks to supervise the banking industry. In March, 2007, CBRC issued the " China's Banking Sector to Implement the New Capital Accord Guidance" , marks the beginning of our banking supervision in accordance with the New Capital Accord. According to the present stage of our country, Our regulatory authority should focus on issues of banking supervision cooperation between our country and other countries, At the same time, we should change in a timely manner the pattern of supervision at the form of regulatory focus on function. Finally, the internationalization of banking should be used to formulate the regulatory laws and regulations.The Basel Committee believes that the potency of the market restraint should be strengthened.The market restraint and supervision of regulatory authorities all belongs to exterior supervising and managing scope from the overall. They carry on the supervision and management of banking with the bank internal management system, play the role together. Our banking industry is strengthening own transparency and the power of market constraints; At the same time, it is a major task at this stage to develop our management techniques; And scale and business advances in various non-financial institutions such as accounting offices, auditing agencies, rating agencies will also have the powerful support to market restraints aspect of our country.This article can be said that the developments of the New Capital Accord have a more detailed study, and combined with the reality of our country ,the article points out the policy recommendations for improving the supervision of the banking sector. However, the regulation of China's banking industry in all aspects is in the phase of continuous explore and improvement. therefore, how to carry out effective supervision of the banking industry also need to further study. |
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