Irb. "basel Ii" Study, The Applicability Of The Commercial Banks In China

Basel Agreement, which was decreed in the year of 1988, was gradually identified and accept by banks from all lands and became supervision standards at execution time. But with the development of globalization and finance market-oriented , drawback of 1988 Basel Agreement was gradually exposed. In order to meet the new supervision situation, Basel Committee decreed the new Basel Capital Agreement which was more perfect in June 2004. At the beginnig of the decreeing, the New Agreement produced far-reaching effects in international banks. According to some surveys, most countries'commercial banks will accept the new Basel Capital Agreement. Our country's Banking Regulatory Commission proposed that our country's banks would still execute the Old Agreement in the first years of the new agreement, But took an active view of Internal Ratings-Based Approach which provides the development direction of banks'credit risk management. Internal Ratings-Based Approach pointed our commercial banks to ways in credit risk management. But IRB calls for a certain credit risk management level and a higher demand to commercial banks who want to implement IRB. When the New Agreement was decreed, it brought great reverberation in our academia. Our academia mainly studied the New Agreement, the New Agreement's affection to our commercial banks, one aspect of the IRB or the difficulties and prospect to our commercial banks executing IRB and so on, and slid over the feasibility of the execution of IRB in our commercial banks. In this text, I will give a profound analysis of the execution of IRB in our commercial banks.In this text, I will point from the formation and development of 1988 Old Agreement, the Old Agreement's position in the international banks and main frame content,analyze IRB's basal theory, structural frame, basic requirements, main feature and four risk elements, relate our...