| 1. The significance of the articleAfter enter WTO, our bank industry will encounter violent competition with international bank industry, and with more foreign financial institution coming into our country, the development of bank industry and diversified business, more and more disadvantage factors will affect our bank's security. Therefore, in this new circumstance, how to strengthen and perfect bank regulation, and how to improve the validity of bank regulation, in order to guarantee the security of our financial system is the best urgent task. And we can see that all financial regulatory administrations release the regulation to commercial banks in order to adapt new international financial environment, but put stricter regulation on the capital adequacy requirement, and bring it to be the core of bank regulation system, we can see this within the forming and development of the Basle Accord.Therefore, we should give full recognition on the capital adequacy requirement since it is the core of bank regulation system as one of instruments and measures of bank regulation. In recent years, our bank's capital adequacy ratio has been given high attention especially for state-owned commercial banks, and many possible approaches which can enrich capital of bank are also discussed. But there are some theoretic problems which haven't been explained clearly, such as why should bank undertake the capital adequacy regulation from regulatory administration, how is the validity of the capital adequacy regulation, and whether the capital adequacy regulation will do harm to economic efficiency. When we make all these questions clearly, our endeavor to enrich capital of bank will just have solid foundation. Furthermore, how to bring the capital adequacy regulation into effect to exert better action is also aquestion we should lucubrate. We can see it has great theoretic significance and practical value to research the theoretic foundation of the capital adequacy regulation and its practice for our bank industry and bank regulatory administration.2. Basic train of thought, structure of the paper and main contentsBasic train of thought of this paper: at first, reach some beneficial conclusions after analyzing some theoretic problems about the capital adequacy regulation; then analyze how to bring the capital adequacy regulation into effect so let it show its better function with the involved regulations of Basle Accord; then we discuss a series of new contents about improving the capital adequacy regulation which is in the New Basle Accord; at last, we analyze what significance the capital adequacy regulation gives to us, the actuality of the capital adequacy regulation in our country, what problems it has, difficulties and suggestions of how to improve the capital adequacy regulation.The paper includes four chapters. The first chapter which is entitled "theoretic analysis of the capital adequacy regulation to commercial bank" analyzes three questions. Firstly, why should the bank undertake the capital adequacy regulation from regulatory administration? In this part we use the capital structure theory to explain the necessity of the capital adequacy regulation through the speciality of decision of bank's capital structure. Secondly, how is the validity of the capital adequacy regulation? We use the model from foregoing context to prove that the capital adequacy requirement can reduce the risk level that the bank choose, bankruptcy probability of the bank and exterior relieving expend. At the same time, we introduce demonstration research conclusions of foreign scholars about the validity of the capital adequacy regulation. Thirdly, if we see from the view of regulation efficiency, we will ask whether the capital adequacy regulation will put some inverse impact on bank's business and the development of economy. Some country'spractice and most economists' demonstration research indicate that if the capital adequacy regulation be put into practice or be improved, it will lead bank curtail assets and re... |
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