Research On Capital Adequacy Ratio Management Of Bank Of Ningxia

The capital adequacy ratio reflects a bank’s capacity to bear losses using its own capital before depositors and ordinary creditors suffer losses. A bank’s capital adequacy level could directly measure its capacity to withstand risks, protect depositors and creditors and ensure safe and stable operation, and it is a sign of strength and security. China followed the new international regulatory rules and launched a series of regulatory documents in succession with the Basel Ⅲ standards and introduced capital regulatory requirements of Basel Ⅲwhich is a systematic and complete regulatory document and has established China’s capital accord framework.The paper is on the base of enough research of the capital adequacy ratio of Bank of Ningxia, based on the regulatory standards raised in "Commercial Bank’s Capital Management Approach (Trial)", analyzes its influences on Bank of Ningxia’ capital adequacy level, the problems that may rise and the impacts on the overall operation and development after Bank of Ningxia implements the new regulatory standards. Furthermore, the article makes recommendations for improvements.