China's State-owned Commercial Banks On Capital Management Based On The "New Basel Capital Accord"

Capital is a constraint for the operation and development of commercial banks. This decided the central position of Capital Management in modern banking management. The allocation of financial resources, business expansion and contraction of commercial banks are based on Capital Management. As the risk must be covered by capital, the capital quantity and structure of banks have close ties with the banks' risk management and we should combine the both.By the end of 2006 Chinese banking industry has opened fully. In line with the international market, Chinese banks must comply with the "rules of the game" of international banking industry, particularly the "International Convergence of Capital Measurement and Capital Standards: a Revised Framework". At present, compared with the developed countries, the financial system of many developing countries is not perfect. The basic conditions for the implementation of the New Basel Accord which many developing countries are lacked are as follows: a good credit rating system, perfected capital market and so on. As the world's largest developing countries, China couldn't implement the New Basel Accord .The reason is that the reform of the Chinese financial system has not been completed.This article first introduced the banking capital management elementary theory and the international standards, separately to the banking capital, the capital adequacy ratio and the banking capital management carry on the theory limits, and through comparison between the new and the old Basel Accord, pointed out the banking capital management from the sole capital adequacy ratio principle to the tendency which unifies to the capital management and the risk management; Next, this article analyzed the present situation of state-owned commercial bank capital management, in reviewed in the state-owned banking capital management history foundation, from the aspects of capital adequacy ratio and capital structure discusses the question which exists in the capital management, carries on the reason to inquire into, through the comparison to "China Commercial bank Capital Adequacy ratio Policing method" and "Basel New Capital Accord", discovers disparity of our country State-owned Commercial bank capital management and the new capital accord, and explained the barrier which faces to the state-owned banking capital management; Finally, proposed the policy suggest of enhancing state-owned commercial bank capital management, from the property right system reform, the sustainable development capital supplemented the mechanism, the economical capital management, the consummation information disclosed the system and the Risk rating system and so on five aspects carry on the discussion.There are three paper's innovation spots: Firstly, while weighting the CAR of the state-owned banking, we consider about China's special national condition, and suggest that bank's capital should include international prestige. Secondly, it analysis the pseudo morph of the CAR's rapid enhancement, and point out the malpractice of government's noting capital, 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 real diagnosis examination to our country State-owned Commercial bank profit ability.