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The Evolution Of China's Commercial Banks' Capital Adequacy Ratio Of The Basel Accord And Its Regulation

Posted on:2006-03-27Degree:MasterType:Thesis
Country:ChinaCandidate:X D WangFull Text:PDF
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I have discussed the state of capital adequacy and supervision of the commercial bank of China through reviewing the development of" Basel Accord" in this thesis.First of all, through the function of bank capital against the risk introduce capital adequacy rate regulation and its importance; Secondly, through analysis the development of the Basel Accord, discussed the quality of capital adequacy regulation, draw some important enlightenment: nowadays, International banking emphasize capital adequacy rate regulation and regard it as the means to take precautions against risk. It is a purpose of Basel Accord to take precautions against risk and the basic point of the authorities regulation to safeguard the confidence in the public to commercial bank. It is a steady source of commercial bank and the motive force of promoting the development of Basel Accord too; Carrying on overall risk management to credit risk, market risk and operational risk will be the base of the efficacy capital regulation; It is not enough to maintain the confidence of the public to the bank that the regulation of capital adequacy rate, so the regulation of authorities and market discipline were introduced into Basel Accord to cooperate with the regulation of capital adequacy rate ; Means of regulation lay particular emphasis on quantitative measure risk. To a certain extent, the new methods remedy the deficiency of the old methods of calculating capital adequacy rate, especially the Internal Rating-Based approach can make the capital of the commercial bank closer to its economic capital and enhance the independence of commercial bank while it is in the course of capital regulation. Furthermore, this article analyzed the states of capital adequacy of commercial bank and capital regulation of our country and discussed its original cause of formation. The conclusion was that: The regulation authorities did not their best, commercial bank assets quality poor and unreasonable capital structure were the cause of the capital inadequacy and the regulation inefficiency. And then this thesis analysed the feasibility of ten kinds of improvingthe capital adequacy rate means, the conclusion was that : Issue secondary bond, convertible bond and preference stocks are the most suitable scheme to raise the capital adequacy rate of commercial banks of China in a short time; In the medium and long-term, issuing stocks publicly through shareholding system transformation , set up good capital supplement mechanism is the best choose; Moreover, the commercial bank should make use of various kinds of ways to raise the capital adequacy rate at the same time.Finally, some suggestions were proposed respectively to regulation authorities and commercial banks in this thesis, in order to solve the problem of the capital adequacy rate of commercial banks of China.At present, China has implemented " the capital adequacy rate management method " to strengthen the supervision of capital adequacy rate of the commercial bank, and the new methods will lead capital adequacy rate of commercial banks decreasing. At the same time, the buffer period of accession to the WTO of China will expire soon, the competition between foreign-funded commercial banks and commercial banks of China will aggravate day by day. The risk management of Commercial bank will be increasingly important. So, studying capital adequacy rate and its regulation will have very strong realistic meanings for commercial bank. The comparing analysis and the research with real figures were used in the thesis. There were some suggestions on the regulation authorities of China and commercial banks, and was hopefully to be useful.
Keywords/Search Tags:capital adequacy rate, Basel Accord, commercial bank, capital regulation
PDF Full Text Request
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