Research On Management Of Capital's Sufficient Rate Of SCB

Following the change of banking environment, the capital's sufficient rate (CSR) becomes the important means of banking supervision and important contents of banking internal control. The minimum capital requirement of the New Basel Capital Accord, a more prudential capital adequacy fiamework with three pillars, has been an admittedly international standard to weigh the stability of a single bank or bankingsystems, and a measure to maintenance banking competitiveness. To intensify capital regulation of state-owned commercial bank can improve risk management, cause assets rational growth, and keep reasonable capital structure, which will avail to control risk of a single bank and banking systems, and establish the effective micro-foundation for the monetary policy transmission.However, due to various historical reasons of state-owned commercial bank system, the management of CSR has not been in a good condition, and the CSR of state-owned commercial banks keeps at a low level. With China entering WTO, bank industry will be on the point of full opening. Facing to the competition of foreign banks, which has large capital and advanced management means, how to enhance the supervising of bank industry in order to maintenance its safety and how to increase CSR of state-owned bank in order to boost up their competition is a problem cried for settlement. Based on above, this paper uses some means to grope for CSR, such as quantitative and qualitative analysis, symbolic logic and demonstration analysis.This article altogether divides into five parts. Part1 Briefly introduces the rationale of the capital adequacy regulation. The second part analyses the actuality of the state-owned commercial bank's CSR, and points out the serious problems. The following part gives the reasons inquired into the problems. It carries on the profound analysis to the state-owned banking'CSR. The fourth chapter summarizes the calculation methodology about CSR in the Basel Accord, and chiefly points out the main merits and the demerits. And it introduces the international experience of the management of CSR. In the last part ,the author gives policy suggestions to improving the CAR of the state-owned banking.There are three paper's innovation spots: Firstly, while weighting the CSR of the state-owned banking, We consider about China's special national condition, and suggest that bank's capital should include international prestige. Secordly, it analysis the pseudomorph of the CSR's rapidenhancement, and point out the malpractice of government's notingcapital, stock changes to going on the market and introducing strategy investors. Thirdly, using David Baylor's Property Growth Model to have a analysis on the property's blind expansion.