Basel Ii Capital Adequacy Ratio Of The Regulatory System And Practice

Since the year 1975, the Basle Committee on Banking Supervision and its series regulatory principle and agreement had became the worldwide mostly important instruction and reference to banking capital supervision as well as the cooperation of it. Among them, The 1988s' agreement was realized as one of the most influential and representational principle of the international banking risk control .as the matter of fact, most of the agreements which published since 1988 to present were recognized as the supplement to it.After stepping into the era 90, the fierce worldwide alteration in economic and financial environment aroused the changes in banking business environment .The banking operation risk became higher. In such situation, it requires regulatory principle and structure should timely adjust and quickly reflect to the changing environment so as to keep the banking risk control updating in time and economic and finance environment stable.In the year 2001,the Basel Committee promulgated a new Basel Capital Accord. it was basic on the year 1988'B.this agreement broke the only one sufficiency protocol restrain and changed it to outside regulation and market regulation. By comparing two agreements, the development tendency of the International Banking Capital Regulation was obviously found. The evolution of the Basle Agreement manifested the development of banking capital adequacy supervising theory in economics. The supervising and managing goal of the Basle Agreement manifested international banking capital adequacy supervising standard and its developping tendency in the future. Inspecting by comparing research how domestic and foreign banks implemented the Basle Agreement, can provide us precious experiences and suggestions to consummate capital adequacy supervising mechanism in State-owned commercial banks.