The Research Of Basel Accord And China’s Listed Banks’ Capital Adequacy Ratio

On January1,2013,"commercial bank’s capital management approach" come into effect, which marked China’s banking industry practice in China Basel III. Capital adequacy ratio as the core of banking supervision, have played an important role in the previous regulatory transforms.Firstly, the development process of the Basel agreements are described, from Basel I to the Basel III, from a purely regulatory of capital adequacy ratio to the micro-prudential and macro-prudential supervision, from the conduct of simple credit risk weighted capital to necessity of considering all the credit risk, market risk, operational risk. Secondly, the capital adequacy requirements in the previous transformation transforms were analyzed and the characteristics of the third edition of Basel summarized.And then gave the review of Chinese capital regulation, from the window period to the post-crisis regulatory supervision model, our regulators increasingly recognize the importance of regulatory capital. The latest "commercial bank capital regulations" can clearly reflect the relevant provisions of the Basel agreement.Then the author wants to compare the capital adequacy ratio between China listed banks and systemically important banks abroad, hoping to tell some problems of Chinese banks.The control of government and high cost of capital are considered to be listed banks’ problems, I consider the fix of regulatory environment and the applying of additional Tier1capital instruments could make banks better.