China’s ‘enhanced regulation’ on banks sees capital buffer increased amid greater risk exposure
The Industrial and Commercial Bank of China and 18 other Chinese banks will face increased regulatory requirements as of December 1. Photo: Reuters
Total of 19 banks will be subject to stricter regulatory requirements as of December 1 - a move that analysts say is in line with market expectations Decision by regulators comes as the nation faces a rise in bad loans that is coinciding with a national economic slowdown
China is ramping up efforts to protect the state-controlled financial system by issuing its first list of too-big-to-fail banks - a move that comes amid a rise in bad loans that coincides with a national economic slowdown.
Those 19 banks - dubbed domestic systemically important banks (D-SIBs) - will be required to increase their capital requirement by 0.25 to 1 percentage points. These stricter rules will strengthen those banks' risk resistance whil