Top Biz News

    Controls on bank loans raised again

    By Zhang Ran (China Daily)
    Updated: 2010-03-01 10:12
    Large Medium Small

    Controls on bank loans raised again

    China Banking Regulatory Commission requires all the commercial banks to hold more than 75% of their capital as core. PHOTO PROVIDED TO CHINA DAILY

    China's banking regulators may raise large commercial banks' capital adequacy ratio to 11.5 percent from an earlier 11 percent level, people familiar with the matter confirmed.

    The 21st Century Business Herald said on Friday that the regulators may ask the country's top five banks to apply the increase.

    "The regulators meanwhile requires all the commercial banks to hold more than 75 percent of their capital as core, or Tier 1 capital, which comprises equity and disclosed reserves," sources said.

    But they added that the capital adequacy ratio requirement for smaller banks would remain at 10 percent.

    The new requirement may trigger a new round of fundraising plans by major Chinese lenders, including the two largest - the Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB) - analysts pointed out.

    By September 2009 the capital adequacy ratio of ICBC and CCB were respectively 12.6 percent and 12.11 percent. ICBC and CCB, both of which possess relatively abundant capital, have not released any financing plans yet.

    "The two banks may need to draw up additional financing plans this year with the new ratio requirement," Zhang Qi, analyst with Haitong Securities said.

    The risk-weighted assets of China's big four banks are estimated at 19.5 trillion yuan($2.86 trillion). The 0.5 percentage point rise in the capital adequacy ratio will demand 97.5 billion yuan of net capital, according to Jin Lin, a financial industry analyst with Orient Securities.

    If one fifth of the 97.5 billion yuan can be raised via the issuance of bonds, then at least 78 billion yuan are needed through equity financing, the analyst told Xinhua News Agency.

    The Bank of China and Bank of Communications have already put forward additional financing plans valued at 82 billion yuan.

    Several other major lenders, including China Merchants Bank and Shanghai Pudong Development Bank, announced fundraising plans in the capital market in order to meet the tightening ratio requirement.

    But CCB chairman Guo Shuqing said on Friday he had not received any word from the authorities about a capital adequacy ratio increase.

    Related readings:
    Controls on bank loans raised again Central bank raises 0.5% reserve deposit ratio
    Controls on bank loans raised again MOF to inject capital into Bank of Communications
    Controls on bank loans raised again Bank of China cuts discounts on mortgage rates
    Controls on bank loans raised again Bank of China's new $5.9b bond issue

    China's banking regulator is urging lenders to replenish their capital after a record 9.6 trillion yuan ($1.4 trillion) surge in bank lending last year.

    Industrial insiders revealed that the banking regulator last week also warned banks to raise their threshold in mortgage lending in order to prevent the emergence of bad loans.

    "Lenders are required not to issue mortgage merely based on collateral without ensuring that their primary source of repayment is adequate," the industry insiders said. "It also requires banks to keep a close eye on the value of collateral in mortgage lending."

     

    亚洲精品无码久久久久AV麻豆| 亚洲av永久无码精品秋霞电影影院 | 亚洲Av无码精品色午夜| 亚洲一区无码精品色| 免费A级毛片无码专区| 自拍中文精品无码| 欧美人妻aⅴ中文字幕| 国产成人无码av片在线观看不卡| 中文字幕无码AV波多野吉衣| 国产中文字幕在线视频| 永久免费无码日韩视频| 亚洲国产成人片在线观看无码 | 中文字幕日韩第十页在线观看 | 最好看最新高清中文视频| 无码国模国产在线无码精品国产自在久国产 | 毛片一区二区三区无码| 无码国产福利av私拍| 日韩av无码免费播放| 最近中文字幕高清中文字幕无| 亚洲男人在线无码视频| 久久久无码精品午夜| h无码动漫在线观看| 国产久热精品无码激情| 人妻少妇精品无码专区二区 | AAA级久久久精品无码片| 日韩精品无码AV成人观看| 亚洲色偷拍另类无码专区| 无码人妻精品一区二区三区99性 | 成人无码a级毛片免费| 久久亚洲AV成人无码| 老子午夜精品无码| 日韩精品无码免费专区午夜不卡| 色多多国产中文字幕在线| 最近免费中文字幕高清大全| 中文字幕视频在线| 日韩欧美一区二区三区中文精品 | 中文字幕在线观看国产| 亚洲日韩VA无码中文字幕| 亚洲天堂中文字幕在线| 国产成人亚洲综合无码 | 狠狠躁天天躁无码中文字幕|