Research On The Capital Adequacy Ratio Of Commercial Banks In China Under The New Situation

After 2008 Financial Crisis,the capital regulation of commercial banks becomes a central issue and evokes a long term research field and heated discussions for scholars.2010,Basel 3 Accord is published,implement a more stringent capital regulation on commercial banks,which initiate a new commercial bank capital regulation age around the world.International banks begin to search an efficient way to keep a higher adequacy capital ratios,and explore the long term institution which can solve it.2012,China Banking Regulatory Commission complied the Measures for the administration of capital of commercial banks(for Trial Implementation)according to Basel 3 and our actual circumstance,redefined the classification of capital and qualified standards,strengthen the constraints of capital regulation,encouraged Chinese commercial banks to learn from the experience of international banks to improve their ability of capital management.In current situation,the capital adequacy ratio of Chinese commercial banks can meet regulatory requirements generally,but there still exist a single and unreasonable capital structure,which is not competitive enough in the international comparison.The banks are vulnerable in capital pressures,especially when the non-performing loans rate showed a rising trend in recent years.In the first quarter of 2016,the balance of non-performing commercial bank loans reaches nearly 1 trillion and 400 billion yuan,which means an increase of 117 billion 700 million comparing with previous year;non-performing loan rate reaches 1.75%,0.08 percentage points higher than the previous year,the increasing the rate of non-performing loans has brought great pressure to China's capital adequacy ratio?China's commercial banks have to improve the capital management ability urgently,innovate the capital instruments actively,learn from the advanced experience of international banks,and maintain a reasonable capital adequacy ratio to keep steady development.Begin from the late twentieth Century,with the development of financial innovation,literature in domestic and abroad which explore the capital management of commercial banks is increasing,mainly include the following categories: research on the capital regulation theory,the external channels to replenish capital,the internal channels to replenish capital asset and the usage of asset management to improve the capital adequacy ratio.But most of the studies focused on a few types of capital instruments to supplement capital,such as contingent convertible bonds,long term subordinated bonds,preferred stocks and mixed capital bonds.This paper is based on the background which China's commercial banks are facing increasingly stringent capital regulatory and asset quality decline and analyze the changes caused by the new capital regulatory rule,the current situation of the capital adequacy ratio and the existing problems and provide a systematic view of capital adequacy ratio improving method and a comprehensive analysis from the aspects of capital and asset management,find the way to maintain or even improve the capital adequacy ratio of commercial banks.On the one hand,this paper focuses on the provisions of the first tier capital and second tier capital instruments tools in the new capital regulatory to explore innovative tools which meet capital requirements,expand the capital supplement channel;on the other hand,this paper start from asset management to control the scale of risk weighted assets and improve capital adequacy ratio in a certain amount of capital.This paper put forward the lack of the related laws,regulations and market mechanism based on the analysis of commercial bank capital and asset management,and gives the policy recommendations to promote China's commercial bank capital instruments innovation and provide a personal way to raise capital adequacy ratio.