Latest News:  
Beijing   Cloudy    2 / -5   City Forecast

People's Daily Online>>China Business

Regulator may delay capital requirement

(Shanghai Daily)

09:17, December 16, 2011

China's banking regulator may postpone tougher capital adequacy ratio regulation on banks in a bid to ensure credit supply and support economic growth, and analysts view this delay as a signal that the regulator may ease the "over-tight" supervision on lenders.

The new regulations, originally planned to take effect at the beginning of next year, will punish banks which missed the ratio of 11.5 percent for systematically significant banks and 10.5 percent for non-systematically significant lenders.

The ratio measures banks' ability to meet time liabilities and other risks such as credit risk and operational risk. Banks are also required to put aside at least 2.5 percent of their total loans as provision against bad loans.

"With domestic economic growth slowing, the banks need sufficient capital to sustain economic growth and credit supply," the Shanghai Securities News reported yesterday, citing an unidentified official from the China Banking Regulatory Commission.

The regulator said that revisions are still being made on the draft regulations and that there is not yet a time table for implementation.

The draft of the regulation was announced in May, a time when Chinese banks plan to raise funds to replenish their capital base due to last year's lending binge.

Li Feng, an analyst at Minsheng Securities, said on Wednesday that listed banks in China will need to raise a combined 200 billion yuan (US$31.6 billion) to meet the new capital ratio requirement and that all 14 listed banks in China failed to meet the provision requirements in the third quarter of this year.

Analysts said the delay indicates the CBRC will slightly ease its credit regulations and monitoring amid sluggish economic growth.

 
 
 
 
We Recommend
 
 
 

Email|Print|Comments(Editor:燕勐)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Nearly 9 years on, US withdraws from Iraq

  2. 1st twin giraffes celebrate birthday

  3. Scuba divers welcome bowmouth guitarfish at aquarium in Hungary

  4. Consumers throng to shops for coming Christmas in Rio

Most Popular

Opinions

  1. Risks behind India's military buildup
  2. 2011: Year of government micro-blogs
  3. Chance of RMB devaluation small
  4. Narrow vision limits China's discourse power
  5. Dubai chasing Singapore's strictness with violations
  6. Too early to loosen China's property controls
  7. Do not let disputes taint Sino-Korean ties
  8. The natural way to pick your stocks
  9. China must retain its strengths as it goes global
  10. Canada's short-sighted move should be denounced

What's happening in China

2nd Airbus A380 arrives in Beijing

  1. Property prices in big cities declining
  2. More Chinese cities see housing price decline
  3. Drought snags shipping on rivers in S China
  4. Gas explosion kills 9 in central China coal mine
  5. Beijing reaches annual "blue sky days" target

PD Online Data

  1. Yangge in Shaanxi
  2. Gaoqiao in Northern China
  3. The drum dance in Ansai
  4. Shehuo in Baoji City
  5. The dragon dance