Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)

The Structural Adjustments in a Chinese Commercial Bank in Response to New Capital Rules: A Case Study of Bank of China

Authors
Botao Song
Corresponding Author
Botao Song
Available Online 14 December 2020.
DOI
10.2991/aebmr.k.201211.049How to use a DOI?
Keywords
Structural adjustments, capital adequacy ratios, capital raising
Abstract

This paper analyses the structural adjustments surrounding capital adequacy ratios undertaken by Bank of China in response to the New Capital Rules over the past 10 years. It decomposes the strategies employed by BoC into “Capital” as the numerator and “Risk-weighted Assets” as the denominator, and makes an in-depth analysis of the facts respectively. As the internal capital growth capability was contained by limited room of retained earnings compounded with declining ROE, BoC issued multiple financing instruments to raise capital externally, with great delicacy in choosing suitable vehicles and calibration of timing. BoC implemented an internal rating-based approach to measure the credit risk, and rearranged the business structure based on the underlying risk parameters.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
14 December 2020
ISBN
10.2991/aebmr.k.201211.049
ISSN
2352-5428
DOI
10.2991/aebmr.k.201211.049How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Botao Song
PY  - 2020
DA  - 2020/12/14
TI  - The Structural Adjustments in a Chinese Commercial Bank in Response to New Capital Rules: A Case Study of Bank of China
BT  - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
PB  - Atlantis Press
SP  - 288
EP  - 294
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201211.049
DO  - 10.2991/aebmr.k.201211.049
ID  - Song2020
ER  -