Abstract
Capital adequacy ratio(CAR) indicates the requisite capital quantity possessed by the bank and the ratio of the bank capital and the weighting risk assets under the requirement of the supervisory authority , which is the important criterion of measuring the adequacy of the capital and risk-precaution of the bank . capital is the life of the modern commercial bank and the last line of defense to keep the public belief and prevent risk . In the recent years , commercial banks become the important constitution of Chinese financial system accompanied with the fast development of the national economy . however , due to the realistic and historical localization , Chinese commercial banks lack of the hard capital restriction for many years ,resulting in the low level of CAR .Along with the strengthening of domestic capital restriction and supervision ,the increasingly emergence of the problems of scarcity capital in banks becomes the obstructions that restrict the operation and development of band .this paper firstly analyzes the status quo and problems in the CAR management of commercial banks by theoretic and demonstration method , then bring forward the practical approach to enhance the CAR of our banks.
Keywords: commercial banks; Capital adequacy ratio(CAR); risk assets