Basel Ⅲ And Chinese Banking Risk Management

Basel III as the core of international bank regulatory reform, both continuation ofthe risk-based regulatory philosophy of Basel I and Basel II, and also beyond thetraditional capital regulatory framework, from a broader perspective to understand therisk in the regulatory system level, established micro-prudential and macro-prudentialcombination of the regulatory approach, which was the cornerstone of the regulatoryreform agenda of the G20member countries. As a member of committee, the ChinaBanking Regulatory Commission (CBRC) released "China’s banking sector guidanceon the implementation of the new regulatory standards" in April2011, whichestablished a capital adequacy ratio, leverage, liquidity, Loan loss provisionregulatory benchmark on the basis of the Basel III, and clearly banking prudentialsupervision framework and implementation of the road map. Now, China’scommercial banks are facing increasingly complexly external marketenvironment, which is bound to enlarge the hidden risks. Therefore, theimplementation of the new regulatory standards as an opportunity to promoteco-ordination in accordance with the Basel III requirements, combing analysis of riskmanagement governance framework, to establish compliance with regulatoryrequirements and to adapt to the future development trend of the overall riskmanagement framework to further enhance the world of commercial banks in Chinacompetitiveness.The paper is divided into five chapters. The first chapter is an introduction tointroduce the background and significance of the topics summarized in the domesticand foreign scholars in this field of research, and point out that the difficultiesencountered in this thesis and innovation; Chapter II describes the development of thebasel from I-III, and respectively introduce the background, content, affecting fromthe version of the three areas discussed; Chapter III involve the risk measurement of commercial banks, in accordance with the framework of the original agreement, andcombine with China’s commercial the bank’s risk situation, taking research analysisabout credit risk, market risk, operational risk, which plants the groundwork for thenext chapter; Chapter Ⅳ expresses the empirical analysis about commercial bank,firstly describe the difference between the original Basel III and CBRC’s, secondlyfollowed by the model and as the financial data of the16listed banks sample, forecastthe main indicators of the next few years, at the current pace of development ofChina’s commercial banks, are banks able to meet regulatory requirements; the finalchapter concludes the problems and the corresponding recommendations whenimplementing Basel III completely.