Research On Asset Allocation Of China Commercial Bank-Based On Capital Constraint

Since the announcement of the1988Basel Capital Accord, capital adequacy ratio has been avery important international banking as a major indicator of regulatory. In the sub-prime financialturmoil sweeping the globe, many commercial banks suffered a heavy blow. The institutionalarrangements of the past has exposed various problems, the most prominent is the capital to absorbthe loss of the ability of assets to lack of preparation. In Such a situation, the Basel Committee andthe national regulatory authorities begun to develop a new commercial bank capital regulatorystandards."Basel III"("The New Basel Capital Accord"), a substantial increase in bank capitalrequirements. Macro-prudential policy framework and improve the proportion of ordinary shares atthe same time, the rapid expansion of assets, the introduction of counter-cyclical capital buffer andthe capital retained buffer index. It also developed additional requirements for systemicallyimportant banks.In recent years, the expansion of China's banking assets very quickly, and is especiallypronounced in the international banking environment is still in the overall recovery process. Alongwith the increasingly stringent regulatory standards, alliances and rivalries between China'scommercial banks' capital constraints and asset impulse is worth to be discussed.This paper firstly introduces the commercial banks' capital management and asset allocationconcepts and basic theory, followed by a discussion of the problems encountered by European andAmerican banking asset management and hidden behind the prosperity and development of China'sbanking industry. And then through the empirical analysis, the level of capital adequacy ratio ofcommercial banks in China in recent years to total asset growth and loan growth. Conclusion forChina's commercial banks is how to optimize capital management, and improve the asset allocationsuggestions.