The New Basel Agreement "under China's State-owned Commercial Banks' Capital Management Issues

The Basel Capital Accord of July 1988 resulted from the discussions and researches of international banking supervision by the Group of Ten .It transformed the concern of banking supervision from the inside to the outside of banks, Integrated the quality of banks capitals into the quality of them by requiring adequate capital management of commercial banks. Compared with original Basel Capital Accord, The new one requires the according capital of all risks including credit risk, market risk and operational risk, and puts forward a series of progressive methods of measuring the capital which can be flexibly choosed by banks. The New Capital Accord attaches more importance to banks' inside system of assessing risks than to the capital adequacy, and emphasizes the supplementary role of Supervisory Review of Capital Adequacy and Market Discipline.If sated commercial banks in china meet the requirement of the New Capital Accord, many questions must be solved, including the possible continual worse in capital adequacy, a lot of drawbacks in the current standard of measuring capital adequacy, imperfection in the internal system of assessing risk and so on. In order to cope with the challenge from the international financial market, commercial banks in China should make full use of the advanced managing experience of international banking, raise capitals by all possible means, make capital structure perfect, set up concern on Internal Ratings-Based Approaches, and continue to improve the quality of assets and the capability of gaining profits. The article first gives the birth and development of the Basel Accord. Then, introduces the capital, capital ratio and capital management. The part of thesis analyzes the main questions of Stated Commercial Banks of China. At last, this article gives directions to perfect the management of the banks in China in carrying out the New Basel Accord.