CBRC seeks public opinion on new capital rules
Updated: 2011-08-16 09:29
BEIJING - China's banking regulator said Monday it has begun to seek public opinion on the drafted tougher capital rules for the nation's banks.
The new rules will keep minimum capital adequacy ratio (CAR) for banks of systematic importance at 11.5 percent, while raising the ratio for banks of non-systematic importance to 10.5 percent, the China Banking Regulatory Commission (CBRC) said on its website.
The regulation is designed to keep China's banking industry in compliance with the Basel III framework, a set of new global banking requirements agreed to by G20 leaders at the end of last year.
The opinion inquiry will conclude on September 20.
The CBRC has repeatedly raised the minimum CAR to slow loan growth and rein in credit risk after nearly 20 trillion yuan in new loans were extended over the past two years as part of the government's crisis-combating stimulus package.
Before the global financial crisis occurred, the minimum CAR for Chinese banks was 8 percent.
According to the CBRC, major banks will have to meet the new standards by the end of 2013, while others will have to meet them by the end of 2016.
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