Causes of and Thoughts over the Negative Capital rate of Agricultural Bank of China
[Abstract]Recently, one of the most discussed issues should be the going-onto the stock market of the four major state-owned banks. As is known to all, 2006 is the year when our financial industry is faced with big foreign banks and it is also a year to test the results of our domestic banks. Consequently, our four major domestic commercial banks have started their preparation for the stock market since 2004，During the course, negative capital rate is what that is slowing down our four major banks’ paces to be listed，Agricultural Bank of China is a typical example in case. In recent years, its negative capital rate has been well above 25%, what’s more, sometimes it is even above 30%. There are many causes for this, historically, presently, externally and internally. By analyzing the causes of the remaining high negative capital rate, this paper aims at providing effective countermeasures.
[Key words]Agricultural Bank of China，negative capital rate，remain high cause，countermeasure.
