1, insufficient capital.
The transformation of asset structure and the expansion of business scope may lead to new risks. This needs to be backed by the corresponding capital reserve.
With the expansion of bank assets, risk exposure will gradually emerge. In order to make up for the risk loss, it is necessary to have sufficient capital reserves.
2. Unreasonable capital structure and single source.
Before 1993, China's bank capital was mainly formed by three ways: national financial allocation, bank accumulated funds and surplus to be distributed. After 1993, according to the provisions of the new financial system on the capital of commercial banks, the capital invested by various investors and the capital reserve, surplus reserve and profit distribution formed by the proliferation of these funds constitute the owners' rights and interests of commercial banks, representing the rights and interests of investors in commercial banks, and commercial banks can use them for a long time during their existence.
Due to the narrow business scope, poor profitability and weak capital self-replenishment ability of state-owned commercial banks, it is urgent to establish a perfect capital replenishment mechanism.
3. The quality of assets is poor, and the loan stock is not alive.
China's banking industry should adjust its asset structure, from traditional single credit loans to loans, securities investment and various financial innovation businesses.
4. The quality of supervisors is not very high.
With the development of China's economy and opening to the outside world, the risks of commercial banks are getting bigger and bigger, but the ability to control risks inside Chinese banks is not very strong, and the quality of supervisors is not very high.
Problems and Countermeasures in Capital Management of Commercial Banks in China
1. Enrich the core capital, and establish a core capital replenishment mechanism suitable for the expansion of assets.
① Ways of financial capital increase.
(2) Develop the capital market and raise capital by listing commercial banks.
(3) Commercial banks enhance their ability to accumulate self-capital.
2. Increase the secondary capital and broaden the channels to supplement the secondary capital.
(1) is to develop debt-based capital instruments and subordinated debt instruments.
② Improve the general bad debt reserve system.
③ Establish and improve the non-public reserve system and asset revaluation system.
3. Strengthen financial supervision
In order to further improve the level of financial supervision and effectively perform its supervisory duties, the newly established CBRC will supervise the market access of the banking industry, the qualifications of senior managers of the banking industry, and the handling of unexpected risks. On-site and off-site supervision of banking financial institutions. The establishment of the CBRC will accelerate the pace of integrating the regulatory concept, system, methods and technology with international practices.
(1) The CBRC may, together with commercial banks, formulate a set of capital level assessment procedures and methods suitable for China's risk situation.
According to the risk management level of China's banking industry, it is more appropriate to adopt the internal rating method. China Industrial and Commercial Bank has started this work.
(2) Understand the risk status of commercial banks in time through on-site inspection and off-site supervision. For commercial banks with high risks, timely give risk tips, assign special personnel to track the development trend of risks, and urge commercial banks to take measures to improve their risk status or reduce risky assets within a time limit.
(3) Assessing whether the capital adequacy ratio of commercial banks meets the minimum standards required by regulatory agencies. If it is lower than the minimum standard, commercial banks are required to increase capital or adjust asset structure, reduce asset scale and sell some risky assets.
4. Strengthen social supervision
In order to strengthen financial supervision and improve the transparency of business information, the New Capital Accord requires commercial banks to make quantitative and qualitative information disclosure in four aspects: scope of application, capital composition, risk exposure assessment and management, and capital adequacy ratio. In order to strengthen supervision, standardize supervision behavior and speed up the integration with international practices, commercial banks must publicly disclose relevant information to the society. At present, in addition to Shenzhen Development Bank, Minsheng Bank, China Merchants Bank and Shanghai Pudong Development Bank, China Industrial and Commercial Bank, China Construction Bank and Bank of Communications also disclosed their annual reports for 2003. In the future, other commercial banks in China should also disclose relevant information as soon as possible according to the development of the situation and regulatory requirements, so as to strengthen social supervision of commercial banks.
5. Strengthen risk management, improve asset quality and reduce non-performing loan ratio. To maintain the capital adequacy ratio, we need to reduce and control the denominator in addition to expanding the numerator and increasing the capital. Of course, it is not advisable to absolutely control the increase of assets. The feasible and effective way is to strengthen risk management, improve asset quality and reduce the scale of risk assets. There is much to be done in this respect, which is also the most effective way to improve the capital adequacy ratio of commercial banks in China at present.