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The New Basel Capital Accord, Capital Adequacy Ratio Of China's Banking Supervision

Posted on:2006-07-14Degree:MasterType:Thesis
Country:ChinaCandidate:Y B WangFull Text:PDF
GTID:2206360152498535Subject:Quantitative Economics
Abstract/Summary:PDF Full Text Request
From the capital adequacy ratio (CAR) of internationally active banks could notbe less than 8% required by the Basel Accord in 1988, to the Third Consultative Paperof New Basel Accord Framework published in May, 2003, the management of CARhas passed through more than ten years. The implement of the Basel Accord and thecorresponding rules has been playing a very important role in international bankingsupervision, in which CAR is an essential factor.However, due to various historical reasons of state-owned commercial banksystem, the management of CAR has not been in a good condition, and the CAR ofstate-owned commercial banks keeps at a low level. With China entering WTO, bankindustry will be on the point of full opening. Facing to the competition of foreignbanks, which has large capital and advanced management means, how to enhance thesupervising of bank industry in order to maintenance its safety and how to increaseCAR of state-owned bank in order to boost up their competition is a problem cried forsettlement. Based on above, this paper uses some means to grope for CAR, such asquantitative and qualitative analysis, symbolic logic and demonstration analysis.The paper begins with the Basel Accord and generally makes clear thecalculation means of CAR. Next, it introduces the international experience of themanagement of CAR, and sum up the actuality of our country's CAR. And it sets up amodel to analyze the validity of the management of CAR. Also, it analyzes the effectamong the CAR, the loan numbers and the income of banks. The paper makes use ofsome data from China finance almanac and bank's webs to approve above. It tries togain the range of CAR suited for state-owned banks in order to provide a new idea forthe management of our country's CAR. Lastly, the paper affords some advices toimprove our country's CAR.This paper consists of five chapters.The first chapter expatiates on the background of the selecting topic. Next,Relevant references of domestic and foreign scholars are reviewed. Last, theresearching thought and the innovation are taken on.
Keywords/Search Tags:Basel Accord, Capital Adequacy Ratio, The Validity of the supervision Management, The crunch Impact
PDF Full Text Request
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