By Ba Shusong, Liu Qingtao, Jia Bei　

Date: 2004/10/28

Abstract:

China Banking Regulation Commission issued the "Regulations on Rate of Capital Abundance for Commercial Banks" in March 2004. It is an indication that the banking industry in China has embarked on the phase of capital abundance regulation in its formal sense. In this process, it is necessary to readjust the traditional banking operation in China to match the requirement of capital management; on the other hand, practical approaches for increasing the rate of capital abundance in China's banks should be made in the future, which will include capital replenish mechanism and risk management methods.