Development Pattern Study Of Industrial And Commercial Bank Of China On Capital Restriction

In modern banking regulatory framework, capital constraints nature can be divided into two categories : First, the number of bound is expressed as the amount of capital banks in its business expansion and business restructuring and optimization caused by the constraints and restrictions, as well as regulatory authorities, markets and the banking requirements of their own business development process and the total capital structure and maintain appropriate coordination; Second, the quality constraints, not only embodies some of the capital investment of shareholders on the basis of a reasonable return on capital requirements, but also in the regulatory authority, through the capital market players to the number of commercial banks operating principles and behavioral patterns of restraints. From the relationship between the two, the number of constraint concerns the competitiveness of the banks and growth, the major banks to survive; Quality concerns bound banks operating efficiency and stability, the main impact of the development bank.In the financial globalization and the wave of financial innovation to promote, banks within the scope of international competition is becoming increasingly fierce. they face the risk of increasing. For our part, by the end of 2006 on the right of foreign banks to open RMB business, the implementation of the same national treatment. This means China's commercial banks and some multinational banks compete with Taiwan, However, as the main representative of the banking industry in China Industrial and Commercial Bank of China. In the capital adequacy ratio of the very important indicators of performance are not satisfactory. This paper is in such a context, the conditions in the capital constraints, How actively and steadily carry out various operations, broaden the capital added, thereby achieving the overall health functioning, more effective allocation of funds for economic development services, so that their domestic and foreign banks in the fierce competition invincible.This paper studies the capital constraints under the conditions of how to develop China Industrial and Commercial Bank of China business, focus on the following two aspects of the in-depth study, First, the basic business, Second, capital replenishment. Basic business, from the Industrial and Commercial Bank of assets, liabilities and operations among three specific aspects of the development model, including : business assets : a debt-to-equity swap, asset securitization, introducing economic capital; liabilities in business : proposes the establishment responsible for the management system for business innovation; in the middle of business : a rational plan, Standard Management intermediate business and improve the external environment.In the capital added, discussed this stage of the Industrial and Commercial Bank of China to improve the capital adequacy ratio as used in common ways, These channels are major capital injection from the government to issue long-term bonds sub introduce overseas strategic investors, adjust the structure of assets, intensify efforts to deal with bad assets, summed up as "strategic elements" and "denominator strategy." This paper analyzes the way they used the deficiencies, which means that foreign powers are realized, only have short-term effects. Facts prove that these external means for the Industrial and Commercial Bank of China to improve the adequacy ratios are very limited role. Furthermore, the above means in reality the use of a problem, it is noteworthy : these problems are interrelated. China is at the root of the Industrial and Commercial Bank of low income, poor quality of assets, operating inefficiencies, etc., Fundamentally speaking, or is the bank's own system, this is a fundamental solution to the problem lies, This paper is one of the main innovations. Based on the policy environment supplementary capital construction and improvement : the reform of commercial banks of its own system. strengthening financial supervision and external conditions to protect.