debt to capital ratio calculation

Capital ratio of at least 8 percent 15 years

Capital ratio of at least 8 percent of 15 years, the concept of commercial banks industry. Spring 2010 has increased for the first time in China, decided to include in the capital adequacy ratio of major banks own increased to 11 percent. Huijin three lines is the concrete implementation of the new agreement, while at the same time, shows a dynamic capital adequacy. We can say that the huge gold replica watches obligations of a "capital cushion" macro-prudential tools in China. Capital buffer changes in China's economy, the capital buffer is called, simply increase the economic boom in excess of capital adequacy requirements for a period of economic depression in response to the slowdown of the capital. Sink a capital injection of 100 000 000 000 Debt blonde at the same time, the Financial Supervision Authority also redouble efforts to Beijing buffer explore nixing programs.

Capital buffer in the crisis for reform of the new capital Accord 2008csim. Early in the second half of 2010, the authority Bank regulators' International – the Basel Committee, the Commission issued the inverse of the buffer of the project cycle of capital in economic proposals below the Basle Program, is a global financial supervisors long debate, the setting current ratio of capital adequacy also mentioned that can be considered as a capital cushion "program in China. absorbers of capital and how I can change the trajectory of watches China's economy false. Basel damping design idea is the capital adequacy and the business cycle that the requirements of economic prosperity the hooks of the capital stock, economic depression, the capital buffer requirements decrease. To the credit-based features of the economy China, dynamically adjusted capital ratio is associated with a corresponding adjustment of credit expansion, which is to constantly on the brakes, the pressure center point of the economy accelerated, the capital cushion for the first of China's economy will soften the cyclical macroeconomic fluctuations.

Capital reserves in the economy of China is the second effect is reflected in the stock market. In the summer of 2006, the Bank took the initiative landing unit 200 000 000 000 recapitalization of bank financing, listed on the stock market continue to affect. Capital market financing as the capital of the buffer capacity constraint and an important factor in programs in China earlier this year to increase the stock of refinancing adequacy ratio of funds from rumors and conjecture, the Rolex watches stocks lower supporting evidence. Capital to cushion the impact of the third is the ability to achieve more effective monetary policy and financial supervision. First Great China, said the capital began in 1998, the Department of Finance issued a special obligation to 2.7 trillion state four commercial banks 2004 MP for the proper management, this period was the first practice of regulatory capital adequacy. Although similar to the period 1996-2005 to achieve the goal of expanding domestic demand, monetary policy six times to set the margin requirements to 10 times lower loan interest rate.

However, because that the priority of the credit crunch of capital adequacy on a large scale, it turned out, especially in 1997-2002 monetary policy operation has achieved the desired objective. And after the introduction of the capital buffer provided in the financial regulations and the level of effective implementation of policy money. It is to seek the views of the proposed operation Basel capital buffer information and communication, etc. to provide a blueprint for a manuscript the world, and the decision provides the "ratio" of credit / GDP. Basel program offers "three steps" reference: the first step in defining a statistical buffer class company requires capital to bank credit and GDP associated class, calculate the ratio of Tiffany, the second step is calculate the proportion of long-term trends with historical data and comparative estimates appears again the location of economic cycles and routing extra "displacement" credit relationship, the third step is the GDP gap GDP credit capital buffer. The author believes that the capital design of the voucher program in China may refer to Basle program credit relationship, but this ratio is directly converted into assets buffer. In other words, the proportion of credit / GDP active too in the most important decisions in China, under the pillow for two reasons: First Instead, the theoretical with the Basle Program, China is at the top of the economic cycle is often not the best time for additional capital. Since 1998, the first bond issue Special to several major additions in 2003 were 450 billion bank capital injection of capital exchange reserves in October 2005 October 2006 three commercial banks in the fall of 2007, a unit of China Construction Bank, returns to the dominance of this, the financing and debt of the meeting of one hundred thousand Golden million. 2700000000000 excluding the first is in the valley of economic cycles, the different decision points and the additional capital injection site, not a business cycle peak or trough.

The recapitalization of commercial banks in China, the regulation limits of the capital adequacy extension of credit, while other intermediate tools macroeconomic objectives. Capital reserves in China's program should give priority to policies the economy and markets. In late 2007, three lines after the announcement, the unit in the state of the relationship of business of the bank capital adequacy has an average of 12%. 2009 in line with the economy driving the policy, China's banking industry has a large loan amount. Late last year, three rows of capital adequacy ratio fell to the cause of this decline, Swiss watches, after only three years. In China, the economic cycle the capital buffer alone soft constraints, and policies to the economy and the strength of capital markets is a difficult obstacle.

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Capital adequacy ratio of not less than 8 percent 15 years