The Minimum Capital Requirement Of International Standards Study

After the 30 years development, nowadays, the minimum capitalrequirement (MCR) international standard of multinational bank hasformed an integral and scientific standard. This dissertation holds theopinion that the MCR international standard is not only the outcome ofinternational coordination and cooperation, but also has the scientificcharacteristic which includes the inheritance of regulatory capitalrequirement (RCR) contents and the implement of economic capitalrequirement (ECR) contents. There is still some gap between MCR standard in China andinternational standard. MCR standard in China is mainly based on the1988 MCR international standard. The mainstream of the great success ofChinese reform and opening-up is participating the existent internationalsystem and being more internationalized. It is both the realistic demandand the risk-prompting function of MCR international standard that urgeChinese MCR standard to be connected to and learn something from theinternational standard. The central thought is that China should be connected to the newMCR international standard step by step. Under the guideline ofregulatory capital keeping up with the increase of economic capital ininternational standard, this paper researches the RCR and ECR in MCRinternational standard and cogitates the relating issues how China learnthe international standard. This paper included 5 chapters. The innerlogistic clues is Why there be the MCR international standard -- What isthe MCR international standard -- Is China standard be connected to theMCR international standard -- How China should learn from and beconnected to the MCR international standard. Chapter 1 answers why it is necessary to be connected to the MCRinternational standard basing on its characteristic of internationalcoordination and the risk prompting function. This chapter explains thereason why MCR international standard occurs from the unfaircompetition of international banks and the regulator competition aspects.From the development of MCR international standard, this dissertationdiscusses the conception of RCR and ECR. Chapter 2 and Chapter 3 research the concrete content of MCRinternational standard. Chapter 2 discusses the composition of theregulatory capital and RCR international standard. Chapter 3 discussesthe standard approach and internal approach of credit and market riskECR international standard. Chapter 4 shows the difference of China MCR standard and MCRinternational standard. This chapter displays how international standard isoperated and applied on abroad through a case, then thinks the differenceof China standard and international standard. Chapter 5 researches the issues of problem and counter measure ofChina MCR standard being more internationalized. That is the realisticdemand and being great implication. The last resort of being connected tothe international standard is to amplify the hard restrain of the capital ofinternational banks. After analyzing the result of Quantitative ImpactStudy, this chapter also discusses the challenge, development pathwayand exigent target.