Research On Capital Adequacy Management Of China's Commercial Banks

The paper, based on the research target of the rate of capital sufficiency of commercial banks, firstly demonstrates the theoretical foundation of the management of the rate of capital sufficiency, and then it analyses the necessity of the management of the rate of capital sufficiency on the aspects of system reconstructions. Then the paper analyzes the practical process in our country of the management of the rate of capital sufficiency, points out that Commercial Banks Management Approach has made it necessary for commercial banks to strengthen their self-restraint, improve the level of risk management and therefore keep the stability of the banking system.with some realistic examples, the paper has analyzed the domestic status of the rate of capital sufficiency, and on the basis of research on quantity and structure, it is thought that the main reasons of the problem of the management of capital sufficiency are: single structure of property right is the key element that affects the rate of capital sufficiency, heavy tax burden influences the rate of capital sufficiency though the variation of internal capital, the great amount of unhealthy assets hinders the increase of the rate of capital sufficiency in commercial banks, the recessive assurance of national credit lessens the demand for it, capital management is backward to some degree in recognition, system and technology. In the end, based on the former research and the realistic situation in our country, from two aspects of the commercial banks and the regulatory commission, the paper gives out some suggestions on how to strengthen the supervision of the rate of capital sufficiency and improve its level. The main measures for commercial banks are: setting and perfecting the capital-restraint system, controlling the expansion of capital risk, introducing capital positively and searching the most suitable strategic investors. Commercial banks should also combine the development target and the improvement of corporate management, set sustained channels for financing, satisfy the business demand for capital, adjust the operation tactics positively and realize the transformation of the pattern of business and profit. The advices for the regulatory commission: the capital supervision being paid great attention, strengthening the force of supervision, perfecting the financial laws and regulations setting up effective banking risk-evaluation system, consolidating the information-exposing system and setting DPS at an early age.