The Study On Effectiveness Of CAR In Commercial Banks

Capital regulation has become the core content of modern banking supervision,capital standards become the measure of the steady development of individual banks and the whole banking system where the benchmark.2010 < Basel III> has set new standards for capital regulation,the banking sector in June 2012,in order to keep up with the development of international banking capital supervision pace,China CBRC promulgated <commercial bank capital management(Trial)>,the new requirements of the comprehensive approach to the introduction of international capital supervision,it will constrain the extensive expansion of the Commercial Bank of our country,promoting the business transformation of our commercial bank capital regulation is so.Whether it can be effective for commercial banks to play a safe operation has been a great deal of attention.The new approach promulgated by the CBRC based on < commercial bank capital management(Trial)>,this paper first gives a normative analysis on the overall level of China’s commercial banks,selected several major commercial banks to analyze its capital adequacy ratio and bank risk status,then use the case of the Bank of communications as the analysis object,in-depth analysis of the effectiveness of I capital regulation based on the risk constraint.By the analysis showed that in the beginning of the new measures on the impact on traffic,the bank’s capital adequacy ratio is rather large,but with the passage of time,but appeared in the capital adequacy ratio decreased,and whether the bank or commercial bank of our country overall level.Bank risk is In a slow rising trend,although the economic downward trend with our existing inseparable,can the regulatory authorities should strengthen the commercial bank risk management.The author believes that,to improve the effectiveness of capital regulation must strengthen the restraint mechanism of commercial banks,banks play the role of self regulatory organizations,effective fundamentally first enhance the capital supervision,followed by the widening of the commercial bank’s capital structure and complementary way to integrated risk assets,the authority of the supervision department,to strengthen the science and rationality.In short,the effectiveness of capital regulation of commercial banks in China should be further improved.