| Summary: | 碩士 === 銘傳大學 === 財務金融學系碩士在職專班 === 100 === The regulatory system for capital adequacy ratio (CAR) of securities dealers in this nation was implemented based on the old system in Japan in 1998 and its framework has remained largely unchanged since. Japan, however, has already made some major adjustments to its framework based on Basel I in 2001, adopting Basel Committee''s building block approach to calculate market risk capital in order to moderately reflect the effects of market trends.
The need to amend the old regulatory system came from large integrated securities firms, with its focus on "market risk." The old system was not adjusted in accordance to the development of the market and the expansion of the securities industry, resulting in inflated market risk calculations. To prevent securities firms from trading the same financial merchandises as the banks but with different standards, creating basis for competition and thus possibly limiting the operation of securities dealers, the need to amend the old system is clearly present.
The objective of this study is to analyze different systems through the juxtaposition of both the new and the old co-existing systems in this country, as well as CAR regulatory systems in major countries around the globe, and to make concrete suggestions on the implementation of risk management systems for integrated securities firms and the future development of securities dealers. The following are conclusions drawn from this study:
1. Enhance current IOSCO organizational framework.
2. The CAR regulations must meet the standards set forth by the Basel Committee.
3. The financial supervision system in this country must comply with international trends.
4. The new and the old CAR regulatory systems for securities dealers are both still in place.
5. Actively push for a new CAR regulatory system.
6. Help non-finance integrated securities firms to transition into investment banks.
7. Securities dealers should brace for the impacts of raised CAR ratios as soon as possible.
|
|---|
