Construction Of China's Commercial Banks' Capital Constraint Mechanism

Capital is the final factor to take risks for commercial banks. Its basic feature is to bear unexpected losses in future. It links closely to bank management with the bridge of risks. It makes much influence to banks, such as asset scale expanding ability, risks absorbing ability, management style. The capital adequacy problem is being focused in the world banking industry. The bank capital can be divided into three parts, registered capital, supervised capital and economical capital. The capital restricting mechanism built from internal and external sides has become the core to improve the competition ability of commercial banks in our country.The thesis studies mainly how capital plays an important role in banking risk management, subjected people's knowing about capital restricting mechanism, depending on the New Basel Capital Accord, fixed on how to determine risk co efficiencies and risk assets weights. First, the paper introduces some concepts on capital restriction. Then, it analyses intrinsic principle of capital restricting mechanism and the result for not building or satisfying capital restriction. Finally, combined with the present capital adequacy and restriction, it discusses the measures to improve the capital restricting mechanism in our country. Capital restriction mechanism is divided into two parts, internal and external. And the integration between external and internal capital restriction is also the one between stability and profitability. It forms latest study structure of capital restricting mechanism in our country.