Study On Problems In Capital Management Of China’s Commercial Banks Under Basel Ⅲ

Since banking acts as a pillar industry in the national economic development, the security of the deposit in banks is closely connected with thousands of households. Due to the particularity in banking business, banks are confronted with various risks, such as credit risks and operation risks. As the last defense line in the face of risks, the bank’s capital is directly related to whether the bank can operate normally, whether the bank can make a further development and whether the bank can maintain a relatively high interest rate.Before Basel I was made public, many employees in the banking would consider a question, namely how much capital was safe to a bank. But they failed to come up with a standard answer. However, Basel I provided us with a unified standard. As the economy developed, the Basel Committee launched Basel II in June 2004 was better adapted to the new situations. This agreement made a great breakthrough in establishing the three pillars ’ supervisory regime, enabled the capital to more comprehensively combine the risk management, and provided the risk and capital management of commercial banks with a more scientific guidance. After the financial crisis in 2007 swept the world, this crisis placed the banking in the winter and brought about a sense of crisis in various banks. Under this situation the Basel Committee realized that the new Basel agreement had not been accustomed to the development of contemporary economy and a new capital agreement in accordance with the current situation must be carried out to powerfully restrain the banking. Therefore, Basel Ⅲ came into being.The gradual execution of Basel Ⅲ places higher requirements for the capital management of commercial banks in our country. Although domestic commercial banks are superior to the average international level in some supervision indexes including the capital adequacy ratio, Basel Ⅲ has an inconspicuous influence on domestic banking in the short term. However, since our country’s commercial banks are confronted with the problems, such as large capital gap, unreasonable capital structure and imperfect risk management, Basel Ⅲ will certainly have profound effects on it in the long run.This paper selected the data from four domestic financial banks, applied the behavioral model of capital and risk adjustment in financial banks to analyze the capital change and risk behavior under the supervision in commercial banks, and presented that the lowest capital supervision requirement can effectively improve the capital adequacy level in commercial banks. Our government should quick respond, continuously perfect regulatory standards, improve the standards of various regulatory indexes, set up the principles of comprehensive regulation, enhance the ideas of capitals constraining the operation and place higher requirements for domestic commercial banks. In the meantime, the commercial banks in our country should make some improvements through constructing effective capital supplement mechanisms, taking full advantage of capitals, preventing risks, strengthening the financial innovation and enhancing the banks’ profitability to lay a firm foundation, namely deal with Basel Ⅲ from the banking itself and supervision strategies.