Study and Analysis of Capital Adequacy in China Commercial Banks

Important role of bank capital was described, analysis method of data sampling comparison was adopted for studying and analyzing capital adequacy condition in China commercial banks, which was compared with major international banks. New requirements of China economic development and financial security on capital of commercial banks as well as insufficient capital adequacy in China commercial bank under current regulatory environment were studied and analyzed. The necessity to solve capital adequacy problem with novel capital instruments was proposed, which was beneficial for enhancing capital strength, easing refinancing pressure, reducing capital cost, improving capital efficiency, expanding influence and improving investment structure. Feasibility of using novel capital instruments under current environment was analyzed and studied, and innovation direction of capital instruments in the future was discussed.