Commercial Banks financial innovation and supervision

Subprime mortgage crisis, many of 8% capital adequacy ratio to meet the regulatory requirements of the bank failure, the effectiveness of capital regulation questioned, but also further strengthen the international regulatory system for the determination of regulatory capital. The newly adopted "Basel III" is considered for decades the largest area of banking supervision reforms, which from various indicators of capital adequacy ratio and capital regulatory system has been improved and revised, the revised definitions include strengthening capital to improve the capital quality, consistency and transparency, strengthen the capital framework for risk coverage capabilities.
Economic and financial development of the new situation requires commercial banks to increase the intensity of financial innovation, financial innovation is the driving force commercial banks. First of all, the new requirements of capital adequacy ratio of commercial banks to increase the pressure on equity financing. In summing up the lessons of the financial crisis, the "Basel III" greatly improved the capital adequacy requirements: early 2015, worldwide capital adequacy ratio of commercial banks from the current level of 4% to 6%; from ordinary shares constitute the core of a capital adequacy ratio, from the current 2% to 4.5%. On this basis, the commercial banks to achieve security operations, its capital adequacy ratio must reach 12% -13%. This increases the pressure on commercial banks, equity financing.