The Study On China's Commercial Bank In Capital Constraints

This paper discusses the issue of China's commercial banks capital constraints. The article says :1 The problem of Chinese commercial banks have capital constraints and funding difficulties dual pressures is largely due to two major factors which its traditional commercial banking system defects and commercial banks operating management, capital management delay caused by. Analyzing the deep-rooted cause shows that China's commercial banks in the capital constraint is attributable mainly to the traditional commercial banking business model.2 The data of the state-owned commercial banks and joint-stock commercial banks in 2000-2006 was analyzed and compared, we can draw the following conclusions: (1) the total capital of state-owned commercial banks has more than joint-stock commercial banks, but the capital adequacy ratio of overall banking is generally low; (2) the core capital ratio is much and multi-layer capital subsidiary is lacky; (3) the inefficient use of capital is low, the main source of profit depended on between deposit and loan business;(4) the lassets structure is irrational, the larger risk weighting of credit assets were excessive; (5)Management of the bank's capital is backward, supplementary capital is serious shortage.3 The article maintained that the traditional commercial banking system's negative effects: (1) a single ownership structure and the traditional development mode of commercial banks is a major factor affecting capital adequacy ratio; (2) a heavy tax burden affected capital adequacy ratio of capital through the changes of endogenous capital; (3) a lot of raising their capital adequacy ratios of non-performing assets is a heavy burden; (4) capital market is backward, the added channel of commercial banks capital is single.4 this paper proposed the corresponding policy recommendations at the current stage of China's commercial banks: First, to embrace risk and capital constraints, the cost-benefit concept ; second, to establish a sound internal risk control mechanism ; third, to expand channels for commercial banks to increase the amount of capital, such as Optimizing asset structure and revenue structure, and increasing investments for listing additional capital fund, and attracting strategic investors, optimizing capital structure; fourth, to reduce risk assets, such as stopping the trend of overly rapid expansion and rationally adjusting the structure of the risk assets of the commercial banks, effective control and disposal of bad loans, the funds of loan loss reserve fully was retained...