Study On Basel Capital Accord And Improvement Of The Banking Supervision In China

Basel Capital Accord that is called "The holy Treaty" was regard as the most authoritative standard in the international banking supervision came into force in 1988. But the world wide banks' management condition has changed due to the economy environment reconstruct. So The Basel Committee tried to find a new pattern on banking supervision in order to accommodate the change, and announced Basel Accord 2 in 2004. However, the financial crisis in 2008 had revealed some defects of Basel2.For satisfying the new situation, the Basel Committee announced Basel3 in Sep.12nd.2010, this is the widest reform on banking supervision in recent years. Both central bank and banking supervision department of each country hope this reform can promote the commercial banks to diminish the business of high risk and hold enough reserves to avoid the shock from financial crisis independently without supports given by the governments.With China entering WTO and foreign banks setting foot in Chinese market, the relationship between Chinese financial market and international financial market has became more and more closed. As a developing country, China should keep pace with the world to create much more favorable condition in international competition. Actually, we had taken a lot of measures to fit the Basel, but because of many reasons, our nation's condition of banking supervision is not optimistic. There are many problems in our banking supervision, such as low bank capital adequacy, supervision idea lag and related system distempered etc. Thus, our national banking supervisor should learning advanced international experience to establish and perfect our banking supervision system as soon as possible.Besides the introduction and the conclusion, there are three chapters in this thesis:In the first chapter, author illustrated the contents and the reasons of the Basel's emerging by describing the development of Basel Capital Accord, pointed out its changes and defects, especially analyzed the Basel 3 that announced latest. In chapter 2, after analyzed the Basel3's legal characters from legal point of view, author elaborated the necessity of combining our nation's financial law with Basel Capital Accord from three aspects:the development of our nation's market economy, taking part in international competition, arising our banks' credit level and strengthening the supervision on foreign-owned banks.In the third chapter, author put forward some suggestions to improve our banking supervision based on analysis of series measures adopted by Chinese supervision department to fit the Basel3 and the challenges we are facing now. The suggestions included follow aspects: legislation, cooperation among different government departments, coordination of the policies and the improvement of relevant regulations and procedures.