A Case Study On The Issuance Of Secondary Debt By Commercial Banks

The global economy was hit hardly by the 2008 financial crisis in the United States,especially when large financial institutions such as Banks and funds were hit hardly and even went bankrupt.In order to stabilize financial markets and reduce the adverse impact of the crisis,many countries have implemented large-scale emergency rescue operations,namely,governments directly inject capital into financial institutions affected by the crisis.On June 7th.2012,the commission regulatory of Chinese banking has issued "commercial bank capital management method(trial)",so as to reclassify capital and reset the qualified standards,for strengthening theregulatory capital.At present,the capital adequacy ratio of China's commercial Banks is consistent with the regulatory requirements,but the capital structure is still single and unreasonable,thus it is easy to face the capital pressure.Now,as a whole,the capital adequacy ratio of the commercial bank in our country conforms to the regulatory requirements,but the defect with single structure and irrationality of capital structure will cause capital pressure more easily.Taking secondary debt issued by Bank of Ganzhou as a case,on the one hand,the article focuses on the application of credit derivatives pricing model to price the secondary debt issued,which is low,the result shows that the distribution of the secondary debt at a lower yield discounted price is higher,the secondary debt also reflects on the secondary debt market a certain degree of "rush".On the other hand,the article mainly studied on the conditions of the model used to trigger event assuming it happens,and to analyze its impact on Bank of Ganzhou capital adequacy ratio before and after the case,the result shows that when the triggers happens easierly,its contribution to the capital adequacy ratio is larger after the occurrence.The paper analyzes the obvious changes in the financial statements Bank of Ganzhou in recent years.and analyzes the issuance of the secondary debt in the process of how to improve the capital adequacy ratio,we found that the market lacks relevant regulatory laws and regulations,which is unclear and gives the relevant policy recommendations,the innovation of the tools to promote the capital of commercial Banks in our country and the way to improve the capital adequacy ratio,and which has provided the beneficial experience for reference and reference value.At the same time,it is of great significance for the stable operation of commercial Banks.