The Research On The Impact Of New Capital Regulation On The Credit Of Rural Credit Cooperatives

In2007the subprime crisis wreak havoc on the global financial system, the old capitalsupervision agreement in the disaster revealed inadequate side, make people doubtwhether the protocol can maintain the stability of the financial system. The Baselcommittee responding quickly, in-depth study of the defects and loopholes of the oldregulatory framework which exposed in this recession process, emphasis on capitalregulation was revised strict comprehensive. The new regulatory standards ("Basel III")was agreed by members of the G20summit in Seoul, which marks the global bankingindustry has entered the era of comprehensive risk supervision.At the same time, as China’s rural economic system and the reform of themanagement, great changes have taken place in the rural financial system, as the traditionalrural financial system is the main force of rural credit cooperatives, facing new competitionand challenges. According to the analysis of the current rural economy and rural financedevelopment trend, In the future and a long period the credit is still the the core business ofthe rural credit cooperatives. Along with the changes of the regulatory trends, rural creditcooperatives are now faced with the choice that supplementary capital or the contraction ofcredit scale.This paper base on prevention the Rural Credit Cooperatives from business risks andthe stability of rural finance system, starting from the credit behavior of rural creditcooperatives, the capital regulation and the credit scale as the research object. Firstanalyzed changes in previous Basel accord introduced background and the concept ofsupervision, and the rural credit cooperatives of regulatory standards and compare to findthe shortcomings and deficiencies of China’s rural credit cooperatives in the capitalsupervision. By the end use the Rural Credit Cooperatives field survey data for empiricalanalysis, the implementation of the capital supervision will make the credit contraction to acertain extent, thus affecting the development of rural economy and the conclusion, and on this basis, put forward counter measures and suggestions to improve the Rural CreditCooperatives capital regulation of the corresponding.