Abstract: The commercial bank's capital adequacy ratio (CAR) requirement has become the core of the banking supervision system. At present,many countries and regions are complying with "CAR no less than 8%",the "Basel Agreement" standard,while it is irrational to ignore individual characteristics. Different from the existing literatures,this paper focuses on the screening information problem about the regulatory standard,and points out that there is a certain substitutive relationship between the regulatory authorny's ability and the minimum CAR. Based on the mathematical model,the results are further explained by numerical analysis. The empirical analysis of some countries and regions also gives support to the model.

Key words: capital adequacy ratio (CAR), banking supervision, screening information