New standards promote a healthy banking sector

Q+A | Wang Zhaoxing

Editor's note: The Third Basel Accord, or Basel III, is an international, voluntary regulatory standard on bank stress testing, market liquidity risk and capital adequacy. The accord was developed in response to the deficiencies in financial regulation exposed by the 2008 global crisis. The accord, which will be implemented before March 31, 2019, is supposed to strengthen bank capital requirements by increasing bank liquidity and decreasing bank leverage.

Wang Zhaoxing, Vice-Chairman of China Banking Regulatory Commission, explained Basel III's influence on China's banking industry in an interview with China Daily reporter Li Yang.