China's State-owned Commercial Banks Under The New Basel Capital Accord Risk Management

Referring to the recently released Basel â…¡, this paper discusses the construction of Enterprise-risk-management system for Chinese State Commercial Banks and the enhancement of risk management for banking. Firstly, the paper given an overview of the evolving process from 1988 to 2004 of Basel Capital Accord which functions an international accord for risk; and briefly analyses the main content, the basic objectives, the realizing mechanism and the main characters of Basel â…¡. Secondly, the paper given an analysis on barriers for state-owned commercial Banks to realize the Basel â…¡ is made from three aspects-starting point, capability and dynamic force. Thirdly, the paper concludes the article by suggesting improving the level of risk management of state-owned commercial Banks from bank's management and external system, so as to meet the new protocol. It includes risk identification and evaluation, capability optimization, consummation of risk management system and capitalsupplement, banking supervision and market discipline.