Research On The Influence And Measures Of Capital Restriction In Chinese Rural Credit Cooperative

Nowadays , the commercial banks of China feature great transformation and challenges with the open of Chinese financial market, the strengthening of the supervising environment, the enhancement of risk consciousness and banks'coming into markets domestically and abroad. The transformation of rural credit cooperative is also ongoing like a raging fire, while various deficiencies and drawbacks in the process of their development have posed great problems for both governments and the supervising authorities, among which the capital deficiency is the most serious obstacle.It is the keystone of all commercial banks to cover risks with capital and to realize their steady and continuous growth that has been shown clearly during the development of foreign and domestic banks. Though the rural credit cooperative have their own managing environment and developing phases comparing with other forms of commercial banks, they have the same goal to advance the efficiency of capital adequacy management as time going. Through these years'transformation, the capital adequacy of Chinese rural credit cooperative has been advanced remarkably, but the key issue is to guarantee its stability and enhance the asset quality."Management of the capital adequacy of commercial banks"debuted by China banking regulatory commission has strengthened the supervising to the capital adequacy and brought forward higher requests to capital management. China has launched the campaign of constructing a modern financial regime to realize adequate capital, ensure its value and revalued upward and the maximum returns, all these goals require attaching great importance to the efficient management of the capital. Therefore, it is necessary to research the capital at risk restriction of rural cooperative banks. We must understand and analyze the environment synthetically, try to takes measures to improve the capital status and ensure the capital adequacy can meet the request, carry out steady and continuous development. The regime of capital restriction of Chinese rural cooperative banks is still very weak and thus the construction of its regulation and organization must be strengthened to ensure the steady growth and at the same time this challenge must be consciously known to the managers, the administrators and the supervisors. While, as a part of the whole economy, the radical process of its transformation should take place gradually, practically and realistically. It is a systematic project. This paper makes a holistic research about the capital restriction management based on the undergoing transformation in Chinese rural cooperative banks, using demonstrative, comparative, theoretic and practical methods, puts forward some measures which may enhance the capital adequacy of Chinese rural cooperative banks.