Small banks strive to raise capital for stricter rules (2)

According to the regulation stipulated by the China Banking Regulatory Commission (CBRC) in June, the core capital adequacy ratio for "systematically important banks" should reach a minimum of 9.5 percent before the end of 2013.

Other banks, including small banks, have been obligated to raise their core capital to no lower than 8.5 percent of their total assets by the end of 2016.

While most of the major banks reached the new standards within the first three quarters of 2012, relatively lower capital adequacy ratios are still prevalent among their smaller counterparts, according to a report by the CBRC.

Given the conditions of the small banks and the government's support to the credit demand of micro-and-small-sized enterprises, issuing bonds may continue to be the main method for small banks to reinforce their capital reserves, according to analysts.

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