Study Of Some Key Issues And Countermeasures In Carrying Out The New Basle Capital Accord To The Chinese Commercial Banks

Basle Committee issued New Basel Capital Accord in JUN 2004, which is undoubtedly not only the supervising compass of the Central Banks of various countries , but also the game rules that the commercial banks of our countries must observe.The Basle Capital Accord of July 1988 resulted from the discussions and researches of international banking supervision by the Group of Ten after Herstatt Bank of West Germany and Franklin National Bank of America went bankrupt. It transformed the concern of banking supervision from the inside to the outside of banks, integrated the quality of banks capitals into the quality of them by requiring adequate capital in accordance with the risks of their assets, so have deeply influenced the capital management of commercial banks. Compared with the original Basle Capital Accord, the new one requires the according capital of all risks including credit risk, market risk and operational risk, and puts forward a series of progressive methods of measuring the capital which can be flexibly chosen by banks. The New Capital Accord attaches more importance to bank's inside system of assessing risks than to the capital adequacy, and emphasizes the supplementary role of Supervisory Review of Capital Adequacy and Market Discipline.If commercial banks in china meet the requirement of the New Capital Accord, many questions must be solved, including the possible continual worse in capital adequacy, inadequate information disclosure, imperfection in the internal system of assessing risk, and so on. In order to cope with the challenge from the internal and international financial market, commercial banks in china should make full use of the advanced managing experience of international banking, raise capitals by all possible means, make capital structure perfect, set up preliminary system of assessing risks with...