What Is Capital Adequacy Ratio?

Capital adequacy ratio, also known as Capital to Risk (Weighted) Assets Ratio (CRAR). Capital adequacy ratio is the ratio of a bank's total capital to its risk-weighted assets. State regulators track the CRAR of a bank to ensure that the bank can absorb and absorb a certain amount of risk. The capital adequacy ratio is the capital ratio necessary to ensure the normal operation and development of financial institutions such as banks. Financial management authorities in various countries generally have controls on the capital adequacy ratio of commercial banks, with the aim of monitoring banks' ability to withstand risks. Capital adequacy ratios have different calibers. The main ratios are the ratio of capital to deposits, the ratio of capital to liabilities, the ratio of capital to total assets, and the ratio of capital to risk assets.

Capital adequacy ratio

Capital adequacy ratio, also known as

Capital adequacy ratio

(One)

Out of the Capital Adequacy Dilemma: Commercial Banks Must Transform Strategic Models

Most experts said that in order to completely change the dilemma of bank expansion and capital restrictions, it is necessary to change the current high expansion and high consumption business model and adjust the business structure. Specifically, on the one hand, it focuses on the role of endogenous financing on the capital replenishment mechanism; on the other hand, it vigorously develops its business structure.

I. Status of Capital Adequacy Ratio of Chinese Commercial Banks

Before 2005, China

In terms of content, the "Administrative Measures" are divided into five chapters, namely General Rules, Capital Adequacy Ratio Calculation, Supervision and Inspection, Information Disclosure and Supplementary Provisions, with a total of 55 articles and 5 additional annexes.

The "Administrative Measures" stipulates that, as of January 1, 2007,

The recent performance of bank stocks has affected market nerves. This is mainly due to the different expressions surrounding the capital adequacy ratio of banks, which has caused investor distress. First, regarding the ratio of capital adequacy ratios of large banks, Whether it has been increased to 13% or maintained at 11%. There is no clear result so far. Secondly, if the level of capital adequacy ratio is increased, how will banks supplement it?

Notice of China Banking Regulatory Commission on Printing and Distributing the Statistical System for Capital Adequacy Ratio

Various banking supervision bureaus, commercial banks and joint-stock commercial banks in various countries:

In order to comprehensively reflect the risk status and ability to withstand risks of banking financial institutions, and strengthen the supervision and management of the capital adequacy of banking financial institutions, according to the Measures for the Administration of Capital Adequacy Ratios of Commercial Banks, a capital adequacy ratio statistical system was specifically formulated and clearly proposed Calculation methods and statistical requirements for capital adequacy ratios of commercial banks. The capital adequacy ratio statistical system includes relevant capital adequacy ratio reports and filling instructions, which are now printed and distributed to you. Please follow the instructions and submit relevant statistical statements as required.

I. Reporting Content

The capital adequacy report includes consolidated statements and unconsolidated statements. For the requirements of the consolidation, please refer to Articles 6 and 10 of the Measures for the Administration of Capital Adequacy Ratios of Commercial Banks. The contents of the report are detailed in Annex 1.

Second, the submission time

The frequency of consolidated capital adequacy ratio statements is half a year, and the reporting time is within 45 days after half a year; the frequency of consolidated capital adequacy ratio statements is quarterly, and the reporting time is within 25 days after the quarter.

Third, the reporting method

Commercial banks and joint-stock commercial banks in various countries should submit the bank's data to the statistical department of the CBRC in the form of electronic reports according to the reporting time requirements; each city commercial bank and rural commercial bank should submit the statistics to the local banking regulatory bureau and banking regulatory bureau. , And the statistics department of each CBRC summarizes the report to the CBRC Statistics Department according to the reporting time requirements.

Please refer to Annex 2 for the format specification and transmission method of the electronic report.

Fourth, other requirements

Commercial banks and joint-stock commercial banks in various countries should submit the Bank's capital adequacy ratio (semi-annual report) data for the end of 2003 and the capital adequacy ratio (quarterly report) of the bank to the Statistics Department of the CBRC before the end of April 2004. Submit the Bank s capital adequacy ratio (quarterly) data for the first quarter of 2004 to the Statistics Department of the China Banking Regulatory Commission before the end of the month; the supplementary reporting date for the data of each city commercial bank and rural commercial bank at the end of 2003 is the end of May 2004 and the first quarter of 2004 The submission date is at the end of June 2004. The data submission time for each subsequent period of each institution shall be implemented in accordance with the reporting time requirements of Article 2 of this notice.

All banking regulatory bureaus shall conscientiously implement the capital adequacy ratio statistical system, actively organize personnel training, and do a good job of collecting, reviewing, collating and analyzing relevant report data to ensure the smooth implementation of the capital adequacy ratio statistical system. The relevant statistical departments of banking financial institutions shall, in accordance with the requirements of the system, formulate specific implementation measures of the Bank, organize system training and system development, and ensure the smooth progress of capital adequacy statistics.

All banking regulatory bureaus shall forward this notice to the relevant banking regulatory bureaus, urban commercial banks and rural commercial banks in their jurisdictions.

According to the above requirements, taking the quarterly report of the first quarter of 2004 as an example, the names of the three worksheets of the Industrial and Commercial Bank of China data files are 201000_0o000_18008, 202000_0o0001_9008, and 2020_00000_0o20008. The names of the three worksheets submitted by Qinhuangdao City Commercial Bank to the Qinhuangdao Banking Regulatory Bureau (assuming that the data unit requested by the Qinhuangdao Banking Regulatory Bureau is 10,000 yuan) are 501041210018100, 501041210019100, and 5010412000020004.

In order to ensure the accuracy of the submitted data, the CBRC has uniformly designed a reporting template. In each worksheet of the template, an in-table and inter-table review formula is established, and the reporting agency can check the audit results of the statistical data by itself.

Fifth, the file transfer method

File transfer method submitted to the Statistics Department of the CBRC. Commercial banks and joint-stock commercial banks in various countries report to the CBRC Statistics Department that the data transmission method is the Internet method. The data transmission method of the statistical department of each CBRC to the CBRC's statistics department is the internal email system of the CBRC. For detailed transmission methods, please refer to the Notice on Matters Concerning Data Transmission of Statistical Reports in 2004 (Banking Regulatory Office [2004] No. 32).

Each city (rural) commercial bank submits data files to the CBRC, CBRC and CBRC to the CBRC. The method of transmission of data files shall be determined by the CBRC and CBRC.