The Economics of Money and Banking Chapter 6 Commercial Banks >>Liabilities of Commercial Banks 3 A:Capital Account Commercial banks'own capital includes the owner's equity obtained Business of Commercial Banks when the banks are first set up,representing the initial investment, surplus,retained earnings and capital reserve of the banks. ▣Basel Accord:8%;4% Capital Adequacy Ratio 9 GUO YING SEM TONGJI UNIVERSITYThe Economics of Money and Banking 9 GUO YING SEM TONGJI UNIVERSITY 3  Basel Accord : 8%; 4%  Capital Adequacy Ratio Liabilities of Commercial Banks Chapter 6 Commercial Banks Business of Commercial Banks Commercial banks’ own capital includes the owner’s equity obtained when the banks are first set up, representing the initial investment , surplus, retained earnings and capital reserve of the banks. A: Capital Account