| This thesis probes in capital adequacy requirements, the highlight of prudential regulations on banking. The author develops her work in three parts, which are in sequence economic and jurisprudential foundations of capital adequacy requirements, the international convergence of such regulation standard as well as national practices in several sampled countries, and how China sets foot in capital adequacy requirements and how to manage in the future.In the first part, some of other regulatory tools, such as regulations on market entrance, price and product line, are examined to see their bulk of negative by-products. In general, these regulatory tools play their own role in a regulatory regime on the premise that they are sure to impose unjust interference to financial market. Yet compared with them, capital adequacy requirements don't produce such shadows while conveys the conceptions of order and efficiency well. The necessity of capital adequacy requirements is further addressed by the importance of capital to a bank and this regulatory tool's unique way of function. It makes risk a must in bank's decision-making model, offers incentives for banks to shoulder social responsibility, removes the innate blemishes of public safety net as lagging behind risk and provoking moral hazards, whittles regulatory arbitrage, and has been a prerequisite for banks to finance in international market. Thus capital adequacy requirements have been deep-rooted in legislations.Later on, three major legal aspects of capital adequacy requirements are analyzed, the constituents of the concerned legal relationship, legal resources and nature. The subject of the named legal relationship falls into two categories, supervisors and supervisees. The latter is commercial banks, yet the fonner takes on a diversity of organization formations, depending on individual regulatory regime. The object of such legal relationship is the regulatory conduct, which is the target both for rights and obligations during the course of regulating and being regulated. Supervisors mainly supervise with legal authority, and supervisees mainly perform their obligation of accepting supervision. This is the major content of legal relationship adjusted by laws on capital adequacy. Such laws have a pool of abundant legal resources containing international convergence, inter- national statutes in specific regions and national statutes. This thesis argues that capital adequacy requirements are essentially a part of reflection of public laws melting with private laws and a part of social-interest-oriented law.In the second part, international convergence on such regulation has come into being. Basel Committee has done a great deal to set up a platform for all internationally active banks to measure their capital and capital adequacy. Since 1988 the Committee has savored its great fame as being the most important international organization on banking supervision. The Committee has never loosened its effort to introduce market principles more into regulations so as to make regulations more efficient. A new capital accord is now under consideration, which is more risk-sensitive, flexible and market-oriented. And the detailed research of the United States, Canada, the United Kingdom, France, Germany, the Netherlands, Japan, Korea, Singapore, India, Hong Kong, Bermuda and Appendix 2 and 3, implies that the majority of regulatory regimes who adopt capital adequacy follow the tracks Basel Committee has suggested. It's believed that the conceived new capital accord is going to cast great influence on the current regulatory regimes.And in the third part, this study reviews regulatory measures in China and detects possible defects among them. Then the author offers several arrangements for China to better its performance of capital adequacy requirements. China should make more effort in tuning her laws to international standards, guided by advanced regulation ideas. First, modify the current measurements of bank capital, set up a capital-alert system and pa... |
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