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Shenzhen Development Bank mulls refinancing plan

By Qiang Xiaoji (chinadaily.com.cn)
Updated: 2011-05-26 11:17

Shenzhen Development Bank's board of directors is considering supplementing capital through private offerings of additional shares and allotment, China Business News (CBN) reported Thursday, citing Sui Ning, the bank's chairman.

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According to the report, the bank will not distribute dividends for its shareholders for the year 2010. Sui said the move will keep the bank's capital adequacy ratio in compliance with the top banking regulator's requirements.

A bank's capital adequacy ratio is the percentage ratio of its primary capital to its assets, which is used to measure the bank's financial strength and stability.

Richard Jackson, the president of the bank, said the overall bad debt ratio of the banking industry will grow, CBN reported.

Sui and Jackson made those remarks at the annual general meeting for 2010, the newspaper reported.