In order to improve the situation of state-owned banks, the state issued 270 billion yuan of special treasury bonds to supplement capital in 1998, making the capital adequacy ratio of the four major state-owned commercial banks reach 4%. However, due to the imperfect corporate governance mechanism, internal control system and risk management system of commercial banks at that time, the capital adequacy ratio continued to decline since then. 1999, the state purchased the non-performing assets formed before the end of 1995 from the four major state-owned commercial banks and China Development Bank by refinancing to the central bank and issuing bonds to state-owned commercial banks, and stripped off the non-performing loans of state-owned commercial banks140 billion yuan. As a result, the NPL ratio of the four major state-owned banks decreased by an average of 65,438+00 percentage points. In February 2003, in order to support the shareholding system reform of state-owned banks, the state decided to set up central huijin Investment Company, which used 45 billion US dollars of foreign exchange reserves and injected capital into China Bank and China Construction Bank in the name of the company, each with 22.5 billion US dollars. With the completion of this capital injection, the two banks finally reached the 8% capital supervision standard required for listing. Since then, ICBC, CDB and Agricultural Bank of China have successively received equivalent capital injections of 654.38+0.5 billion US dollars, 20 billion US dollars and 654.38+0.3 billion RMB yuan from Huijin, and the capital strength of state-owned commercial banks has been significantly improved. In 2004, Bank of Communications increased its capital by 1, 9 1 billion yuan through private placement, of which the Ministry of Finance increased its capital by 5 billion yuan, Huijin Company increased its capital by 3 billion yuan and the social security fund increased its capital by 1 billion yuan. In order to improve the capital adequacy ratio and reduce the rate of non-performing assets, from June 2004 to June 2006, China Bank, China Construction Bank, Industrial and Commercial Bank of China and Bank of Communications successively stripped off non-performing assets 1 654,38+0,866,543.80 billion yuan. At the same time of the new round of banking reform, the Measures for the Management of Capital Adequacy Ratio of Commercial Banks was officially issued in 2004, which made the bank capital supervision more reasonable and scientific. With the improvement of capital supervision and the steady progress of bank reform, the capital adequacy ratio of banks has steadily increased since then. By the end of 2007, the overall weighted average capital adequacy ratio of China's banking financial institutions finally reached the international regulatory level for the first time. The weighted average capital adequacy ratio of commercial banks is 8.4%, and there are 1 and 6 1 standard banks. The assets of standard banks account for 79.0% of the total assets of commercial banks. At the end of 2008, the bank's capital adequacy ratio reached a new level, reaching 12%, far exceeding the minimum level required by international supervision.