Banks urged to trim losses with new debt instruments

Moves to ensure regulatory compliance and boost financial sector opening-up

Chinese financial regulators will continually encourage commercial banks to develop innovative debt instruments and replenish capital, in order to meet regulatory standards and strengthen their ability to absorb losses, said senior officials.

Financial regulators will support four Chinese banks on the global systemically important banks (G-SIBs) list to issue debt instruments overseas, to enhance their total loss-absorbing capacity (TLAC), said a senior official from the central bank's financial stability bureau.