Investigation On Capital Management In Bank Of Chengdu According To New Basel Capital Accord

Capital management as the core of modern banking management is determined by the restriction of capital on the operation and growing of commercial banks. In 2004, Basel Committee issued the New Basel Capital Accord which is the new rules of international capital regulation, which established the comprehensive and more risk sensitive capital management system to affect domestic banks’capital management profoundly. Meanwhile, hard capital discipline challenged the development of banking business with the high-speed growth of assets business of banks. How to accelerate the transformation of development patterns under the restriction of capital management and seek the coordinated and balanced development among profit, quality and scale is the vital issue that should be considered by the commercial banks for sustainable development.The first part of this paper states the basic theory of banking capital management, the development and new trends of Basel capital regulation, and the impact of the New Basel Capital Accord to the promotion of China’s financial regulatory reform and domestic commercial banks risk management. Next, this report analyses the city commercial banks current situation of capital management and the difficulties and challenges of implementation the New Basel Capital Accord, summarizes the progress and achievement of capital management and risk management in Bank of Chengdu in recent years, describes current situation and problems about management in Bank of Chengdu, indicates the reasons to the problems and the gap between current management level in Bank of Chengdu and the New Basel Capital Accord. Finally, the feasibility of proposal how to improve capital management in Bank of Chengdu is discussed, involving establishing concepts of capital management, building modern risk management mechanism, improving internal financing ability, broadening external financing channels, speeding up transformation of businesses, developing intermediary business and retail business and optimizing the economic capital management and performance assessment systems.There are two new points in this dissertation. One is the new research object. Different from the previous research which usually investigated commercial banks which are national ownership or shareholding system, this report states capital management on the basis of actual working experience in the city commercial bank. The other one is different backgrounds. Under the background that city commercial banks have no plan to apply New Basel Capital Accord temporarily, the paper studies and explores how to advance capital management in practice referring to New Basel Capital Accord.