The Development Strategy Of China's Joint-stock Commercial Banks In The Capital Constraints Choice

1988 "Basel Capital Accord" was born. As international banking risks change and financial innovation development, the "Basel Agreement" limitations increasingly apparent, 2004 Basel Committee formulated the "New Basel Capital Accord," which proposed the "three great pillars of the wind" regulatory framework that the minimum capital adequacy ratio, regulatory supervision and inspection departments and market constraints. In 1988 our "Basel Agreement" on the basis of the implementation of the "Basel II agreement," the second pillar and the third pillar of the development of China's capital control regime. Requirements to maintain a certain amount of capital to resist and prevent all types of risks.After 10 years of our joint-stock banks, their business strategies and the development of basic convergence path, no show of strategic differences. Meanwhile, the retail banking business among clients and low occupancy non-capital operations, less capital occupy small business, and even more in its infancy. Most of the joint-stock banks deposits of individuals less than 10% of total deposits, deposits stability is poor, the cost always remain at a high level. Lack of investment banks, trade financing, and easier for individuals and public financial management portfolio, and other high-end business development capacity, resulting in lower overall profitability, particularly among non-business-oriented contribution margin income for small, intermediate business income clients mostly in 5-6%%, much lower than the bank 40-50% foreign advanced level.In the context of capital tough constraints, my commercial banks are facing unprecedented difficulties, on the one hand, the tremendous capital gap prevails, the joint-stock commercial banks more serious constraints; On the other hand, capital supplementary difficulties, accumulating capability is very limited. Capital Management as the management of advanced international banks operating one of the central elements. Commercial banks in China to change the course of modern commercial banks, foreign banks from the advanced management and the use of the concept of economic capital for the gradual establishment of a core capital management system is the inevitable choice of their development process.