Improve The Shanghai Pudong Development Bank Capital Adequacy Ratio

One of the international vulgate guidelines for risk supervision of commercial bank is that capital adequacy ratio (CAR) must be no less than 8%. Shanghai Pudong Development Bank (SPDB) is a joint-stock commercial bank, which gained approval for the public issue of A shares in 1999. According to the command by CBRC, CAR of listed commercial bank must be no less than 8% any day. This rule is a real challenge to SPDB.The paper first introduces the domestic and international background of CAR management. It introduces the meaning, design procedure, goal, service object of CAR, and also includes CAR'S theoretical principle. The paper analyzes the development history and also the current CAR supervision situation of SPDB. Moreover this paper analyzes the current management environment and New Basel Accord's influence to SPDB. Finally, the paper puts forwards the methods to increase CAR of SPDB under the current situation. That is to raise capital amount, to lower risk asset.