On The Management Of The Capital Adequacy Ratio Of Commercial Banks In China

This paper begins with the basic theory about Capital Adequacy Ratio (CAR) of commercial banks, according the requirement and affection of the capital adequacy ratio in the Basel Accord, give a brief introduction of the new and old Basel Capital Accord, and then analyzed the current status and problems of Capital Adequacy Ratio management of our commercial banks. Based on the research about the CAR of domestic and foreign scholars, the paper analyzes the methods of supplement about commercial bank capital, and put forward some useful advices to build dynamic capital supplement mechanism to our commercial bank.The paper is composes of three parts.Firstly, this paper introduced the basic theory about Capital Adequacy Ratio (CAR) of commercial banks and the importance of commercial bank's capital in order to make the theoretical base for the following analysis.The second part analyzes the status quo and problems in the management of CAR in China. And try to find out the reason that CAR being quite low level in our banks, indirect financial system and the government behavior are the macro-reasons;Micro-reason is the weak profit ability of these banks.