BASEL II IMPLEMENTATION IN THE CHINESE BANKING SYSTEM

Author: 
Peer reviewed: 
No, item is not peer reviewed.
Date created: 
2009
Keywords: 
Basel II
Chinese banking system
capital adequacy
three Pillars
the IRB
Abstract: 

This report reviews the implementation of Basel II, an international standard for banking regulations, in the Chinese banking system. In this report, I review the Basel Accords, including Basel I and Basel II, as well as conduct a detailed comparison and analysis of policy changes and their implications on international banking. Then, I summarize the evolution of the Chinese banking system with respect to its capital and the features of current Chinese banking system. Overall, the findings of the study show that the four important features of Chinese banks, namely, size and quality of assets, capital adequacy ratio, and profitability, have made great progress under Basel II standard compliance, particularly for state-owned commercial banks. Based on this analysis, I provide several recommendations. These recommendations focus mainly on the IRB Approach implementation for the Chinese banking system and a supervisory framework for the Chinese banking regulator.

Description: 

Research Project (M.B.A.) - Simon Fraser University

Language: 
English
Document type: 
Thesis
Senior supervisor: 
Pek-Hooi Soh
Department: 
Business Administration
Thesis type: 
Research Project (M.B.A.)
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