A Study On Capital Adequacy Ratio Management Of W Rural Commercial Bank

The standard to measure the stability of banks in our country has become more andmore serious. At the beginning of this year the capital management regulation ofcommercial banks has been promulgated, which has also been called “Chinese BasleCapital Accord III”. This thesis introduces the relevant concepts of bank capital andanalyses the characters and history of Basle Capital Accord. Besides, it discusses theapplication of Basle Capital Accord in our country, which is reflected in RegulationGoverning Capital Adequacy of Commercial Banks that published in2004and RegulationGoverning Capital Adequacy of Commercial Banks in2012. The later one is the systemwe used now. Because Regulation Governing Capital Adequacy of Commercial Banks notonly tightens the regulatory standards, but also has a more strict definition of regulatorycapital and makes several rectifications in the risk weighting system, it will have a biginfluence on the bank’s capital adequacy management. On this theory, this thesis analysesthe situation, problems and causes of capital adequacy ration management in W RuralCommercial Bank. Since it’s not long before this bank established, it has many problemsof its capital adequacy management. Under such a new situation, if W Rural CommercialBank wants to have enough capital to support its expansion, it must strength profitabilityto supplement capital besides external financing. As the development of interest rateliberalization, the profit from loan-to-deposit interest rate will be narrow. Under the newenvironment, W Rural Commercial Bank has to accelerate the step to build qualifiedenvironment and make an effort to exploit new clients and new business to strengthen itscompetitiveness.