Proceedings of the International Conference on Education, Humanities, and Management (ICEHUM 2022)

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A Study of the Capital Replenishment Tools in Chinese Commercial Banks: Current State and Some Suggestions for Countermeasures

Authors
Qinglong Zhang1, Zhishen Wang1, *
1Department of Management Science, Institute of Science Innovation and Culture, Rajamangala University of Technology Krungthep, Sathorn, Bangkok, 10120, Thailand
*Corresponding author. Email: 65824030008-2@mail.rmutk.ac.th.com
Corresponding Author
Zhishen Wang
Available Online 24 April 2023.
DOI
10.2991/978-2-38476-040-4_30How to use a DOI?
Keywords
Commercial bank; Capital replenishment tools; Basel III
Abstract

The capital of a commercial bank is the capital that a bank must inject into its business activities. Its core function is to absorb losses, which can not only make up for losses in the course of business but also provide protection for creditors and depositors when the bank goes bankrupt and liquidates. According to Basel III, the previous minimum requirement of the core capital adequacy ratio of commercial banks was 4%, but now the minimum requirement is 7%. At the same time, a protective buffer is 2.5%, and a countercyclical reserve is no more than 2.5%. The general requirement is that commercial banks’ core capital adequacy ratio will reach 8.5% to 11%. Commercial banks must use different capital replenishment tools to carry out capital replenishment reasonably. This paper will elaborate on the composition of regulatory capital of Chinese commercial banks and the tools used for capital replenishment and analyze the advantages and disadvantages of commercial banks’ main capital replenishment tools. As well as the issue scale and interest rate, and put forward reasonable suggestions for the capital replenishment of Chinese commercial banks.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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<Previous Article In Volume
Volume Title
Proceedings of the International Conference on Education, Humanities, and Management (ICEHUM 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
24 April 2023
ISBN
10.2991/978-2-38476-040-4_30
ISSN
2352-5398
DOI
10.2991/978-2-38476-040-4_30How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Qinglong Zhang
AU  - Zhishen Wang
PY  - 2023
DA  - 2023/04/24
TI  - A Study of the Capital Replenishment Tools in Chinese Commercial Banks: Current State and Some Suggestions for Countermeasures
BT  - Proceedings of the International Conference on Education, Humanities, and Management (ICEHUM 2022)
PB  - Atlantis Press
SP  - 364
EP  - 375
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-040-4_30
DO  - 10.2991/978-2-38476-040-4_30
ID  - Zhang2023
ER  -