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China Daily | Updated: 2008-07-25 07:30
资本充足率 (ziben chongzulu)
Capital Adequacy Ratio
A ratio of capital against risk- weighed assets for banks and non-banking financial institutions, which is a figure indicating their capacity of meeting their liability in time and managing their risks. A globally accepted standard to judge financial institutions, the ratio is watched by almost all banking regulators to protect depositors of the bank and other lenders and maintain confidence in the banking system. The Chinese commercial banks are required by the Law of Commercial Banks to have a capital adequacy ratio of at least 8 percent, which is also a limit for commercial banks around the world according to the Basel Rules effective from 1988.
(China Daily 07/25/2008 page8)
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