The release of the Basel Accord has laid the function and value of capital adequacy ratio, which is the guarantee line of the vitality of modern commercial banks. Maintaining sufficient capital is the basis for the survival and development of commercial banks and the most powerful guarantee for modern banks to resist risks.

Keywords: capital adequacy ratio of state-owned commercial banks

First, the development of state-owned commercial banks

The capital adequacy ratio of four state-controlled commercial banks in China was far below the standard of 8% before 1997, although all four banks met the requirement of 8% in 1998. However, with the rapid growth of savings deposits and bank loans, coupled with the erosion of capital by non-performing loans, the capital adequacy ratio of banks has dropped rapidly and sharply. Later, after several attempts by the state to help commercial banks improve their capital adequacy ratio, the overall capital adequacy ratio of state-owned commercial banks rebounded, but by 200 1, the capital adequacy ratio problem was once again highlighted. Only then did the government realize that capital injection by the government alone could not fundamentally solve the capital adequacy ratio problem. Banks are required to thoroughly reform, strengthen management, and carry out joint-stock reform when conditions permit. In 2003, Bank of China and China Construction Bank took the lead in the joint-stock reform. Since 2005, the four major state-owned commercial banks have accelerated the pace of reform and enriched their capital by listing and financing through shareholding system reform; At the same time, we also actively explore other ways to increase capital besides equity financing, such as issuing convertible bonds and long-term subordinated debts. These measures have greatly solved the problem of insufficient capital of state-owned commercial banks.

Second, the necessity of improving the capital adequacy ratio of state-owned banks

The capital adequacy ratio of commercial banks has become the internationally recognized core of capital supervision and plays an increasingly important role in business activities.

1. The need to participate in international competition. China's four state-owned commercial banks are still in the top of the international rankings in terms of capital and assets, but except China Bank, the other three banks rarely participate in international competition and develop foreign-related business. To participate in international competition, we must abide by the relevant rules of the game, and capital adequacy ratio is one of the core rules. If they fail to meet certain standards, they will encounter a low credit rating and be at a disadvantage.

2. The need to safeguard national economic security. Banking is a highly indebted industry, which is easily affected by various factors and leads to crisis. Its impact on a country's economy is self-evident. Adequate capital is the last guarantee for banks to resist risks and the key to support public confidence. In addition, with the financial globalization and the demise of China, more stringent requirements are put forward for the capital adequacy ratio of domestic banks.

3. The need to expand business and implement national financial policies. At present, the expansion of banking business is restricted by the statutory deposit reserve ratio and capital adequacy ratio. The statutory deposit reserve ratio has been implemented in China for many years, and all commercial banks can generally abide by it, and most of them have excess reserves. However, the capital adequacy ratio is generally low, which can not meet the regulatory standard of 8%, and should actually be higher than 8 0 1. Only in this way, when the People's Bank of China implements the expansionary monetary policy and the money comes out, commercial banks will have surplus assets to support the expansion of their risk assets business.

Three, China state-owned commercial banks capital problem.

1. Tier 2 capital adequacy ratio is relatively low. Both the Basel Accord and China's Measures for the Management of Capital Adequacy Ratio of Commercial Banks stipulate that the core capital adequacy ratio is above 4% and the total capital adequacy ratio is above 8%, which means that the secondary capital can reach 50,065,438+00 of the total capital. The core capital adequacy ratio of state-owned commercial banks in China is basically up to standard, but the secondary capital is too small, which leads to the low total capital adequacy ratio. From the perspective of capital structure, the average secondary capital of banks in developed countries is above 500 10, while the capital of state-controlled commercial banks in China is far from 500/0, so the core capital adequacy ratio of listed banks in China is not much different from that of foreign banks, while the secondary capital adequacy ratio is relatively low.

2. Strong dependence on foreign countries. In recent years, the improvement of capital adequacy ratio of state-owned commercial banks depends largely on external capital sources rather than their own accumulation. In the long run, simple external capital increase cannot meet the capital needs of banks.

3. The low quality of bank assets has seriously affected the improvement of capital adequacy ratio. Loan business has always been the main asset business of commercial banks in China, and it is the main way for commercial banks to allocate funds. Although in recent years, under the pressure of competition, banks have successively carried out some innovative businesses, on the whole, the proportion of credit assets of commercial banks in China is still high. Among these credit assets, the proportion of non-performing assets is high. Non-performing loans not only increase risky assets, but also have a greater impact on capital adequacy ratio as a capital deduction item.

Fourthly, the methods to improve the capital adequacy ratio of state-owned commercial banks.

1. Improve the management level and implement comprehensive risk management to prevent the occurrence of new non-performing loans. In the past, the problem of non-performing loans and "one excess and two retention" eventually eroded capital was extremely serious. According to statistics, the non-performing loans of state-owned commercial banks in China reached more than 200 10 in 2002 and 2003, and if measured strictly according to international standards, this figure can reach more than 40 c/o. In this case, banks can't do well anyway. It is necessary to reduce non-performing loans as much as possible and make the capital adequacy ratio reach or even exceed the prescribed level.

2. Improve management, increase profits and accumulation. On the basis of preventing non-performing loans, improve asset quality and improve asset profit rate. The average profit rate of assets of American banks is above 1%, while the average profit rate of assets of state-owned banks in China is around 0. 35%, so there is still a lot of room for exploration. The four major state-owned banks need to expand their business areas and vigorously carry out intermediary business. At present, the intermediary business income of large foreign banks can reach more than 40% of their total income, while that of the four major banks in China is below 10%, and some even less than 2%, which leads to the excessive dependence of banks on loan income. To establish a modern banking industry, this situation must change.

3. Enrich capital through public listing. The listing of commercial banks after the shareholding system reform is not only the requirement of property rights flow, improving the efficiency of resource allocation and raising capital, but also the practice of market economy. Almost all the famous big banks in the world are listed banks. At present, there are more than 900 banks listed on the new york Stock Exchange, more than 60 in Tokyo and more than 40 in Hong Kong. In reality, a considerable amount of funds can be raised through the listing of banks, so that social funds can become the strong backing for banks to raise capital, lay a good foundation for the sustainable operation of banks, enhance the transparency of bank operations, and make banks bear greater responsibilities and be more constrained. It is the only way to establish a modern banking system to urge banks to strengthen internal management and improve asset quality by using various regulatory means.

4. Issue long-term subordinated bonds to increase the EB rate in secondary capital. In view of the present situation that the core capital ratio of China's state-owned commercial banks is too high and the secondary capital is seriously insufficient, it is an excellent way for China's state-owned commercial banks to replenish their capital by issuing long-term subordinated bonds to increase the secondary capital ratio and then increase the capital adequacy ratio. Banks can avoid diluting profits or weakening management's current control over banks through debt financing, and banks can also deduct interest paid by capital bills from pre-tax profits, which will bring considerable tax benefits. By issuing long-term subordinated bonds to increase the secondary capital of banks, the theory of bank capital and long-term bond swap is well used, which can realize the leverage of debt financing and has been widely used in international banking. More and more large international banks enrich their capital by issuing long-term subordinated bonds and increase the proportion of subordinated debt in bank capital.

5. Actively explore new profit growth points, increase bank capital and improve bank capital adequacy ratio. The source of bank capital accumulation lies in profit. No profit, no accumulation. Since 1990s, the profitability of state-owned commercial banks has basically declined. Judging from the bank's income statement, although the bank is profitable, its profit is decreasing, and its asset profit rate is decreasing year by year. In seeking new profit growth points, domestic scholars have put forward many suggestions, among which the voice of vigorously developing intermediary business is higher. Intermediary business plays an extremely important role in the banking operation in contemporary western countries, not only because it provides diversified financial services to meet the needs of social and economic development, but also because banks play a role in serving customers, contacting customers, stabilizing customers and promoting the development of traditional assets and liabilities business of banks. More importantly, the intermediary business has the characteristics of low cost, high income and low risk, which has brought huge profits to western banks, accounting for more than 40% of the total income. At present, foreign banks have developed wholesale business and retail business, intermediary business and deposit and loan business, off-balance sheet business and on-balance sheet business. Although China's state-owned commercial banks are getting rid of the traditional single business model of deposit, loan and remittance, their ability to develop new business varieties is weak due to internal and external factors.

6. Introduce strategic investors. As CBRC requires that tier-2 capital should not exceed 65,438+000% of core capital, and the supplementary capital of subordinated debt and mixed capital debt should not exceed 50% of core capital, it is meaningless to supplement tier-2 capital no matter how much core capital is insufficient. At this time, banks can consider introducing strategic investors to supplement their capital. Because strategic investors have a certain lock-in period, they can achieve the role of long-term financing, which will not have a great impact on the current capital market and can overcome the adverse effects brought by equity financing; In addition, the introduction of war investment can increase core capital, form diversified investment subjects and property rights relations, improve the efficiency of capital operation and use, and reduce the financing risk, thus overcoming the disadvantages brought by debt financing; The introduction of war investment can bring advanced business philosophy and management methods to banks. In addition, at present, 50% of the state-owned shares of large banks are around 70%, which is still a long way from the absolute holding requirement of 5 1%. Therefore, the introduction of war investment is a better way for banks to replenish capital.

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