The State-owned Commercial Banks To Implement Basel

, the outcome of the development and competition of bank industry, was entitled the name of 'Holy Treaty' by bank industry in the world since its publication. From the published in 1975 to the published in May 2003, the was developed and supplemented gradually within the past three decades.China's bank industry adopts the 1988's edition all the while and promises to put the into force gradually after 2006. However, for China's commercial banks, it is difficult to bring either the 1988 edition or the new one into effect. The author analyzes several problems in the paper, such as capital adequacy ratio, risk management, banking supervision and market discipline, which result from implementing the and gives suggestions to solve these problems. The paper includes three parts:Starting from the historical background of drafting the , the author introduces the progress of its publication and development within the past 30 years in the first part of the paper. The first part also comprises the main content and framement of the published in 1998 and three key points of the new edition including minimum capital requirements, supervision and inspection of the authorities and market discipline. In addition, the author analyzes both the advantages and disadvantages of the two editions in this part.Beginning with discussing the function of commercial banks in national economy and according to the requirement of the , the second part includes the problems of capital adequacy ratio, risk management, banking supervision and market discipline which result from implementing the accord. Furthermore, the author discusses the recent status of state-owned commercial banks and the reasons of these problems by summarizing historical data and comparing...