Commercial Banks Under The Risk-based Capital Management Research

The Basel Capital Accord of 1988 transformed the concern of banking supervision from the inside to the outside of banks. The New Capital Accord requires the according capital of all risks including credit risk market risk and operational risk, and puts forward a series of progressive methods of measuring the capital which can be flexibly chosen by banks. The new one for the first time, truly connects capital management with risk management. Banks are not only to passively meet the minimum needs of capital adequacy, but to match capital level with risk level by strengthening internal risk management.Capital is the prerequisite and foundation of commercial banks. The capital offers a permanent capital source for commercial bank. It can not only offer the foundation for development in the future of the bank but also be used for buffering possible losses. The concept of economic capital promotes constantly the unification of capital management and risk management, and establishes the key position of the capital restrains in the bank risk management.The capital management is a key content of modern commercial bank management. The purpose of the bank capital management is to keep away and dissolve financial risks effectively. If the bank neglects the capital manage, the crisis will cause the loss and even go bankrupt of banks and enterprises, then initiate a series of social turbulence.Capital management is made up of two major parts: external and internal capital management. External capital management is that the supervisor stipulates, supervises and regulates the capital adequacy. Internal capital management is that banks manage capital on the basis of the need of safety and earning capacity. Internal capital management has already...