22 January 2019

Regulator scraps grace period for new capital rules, paper says

China’s banking regulator appears to have cancelled a transition period for joint-stock commercial banks to meet new capital rules, giving them until the end of last year rather than 2018 to meet the revised benchmarks, the Shanghai Securities News reported Thursday, citing an official with one of the banks. In 2012, the China Banking Regulatory Commission gave key lenders until 2018 to have a capital adequacy ratio of 11.5 percent (CAR) and a core capital adequacy ratio of 9.5 percent. The remaining banks had the same time to have ratios that were one percentage point lower. Within the grace period, non-systemically important lenders could gradually meet the requirement. But the official said the commission told the lender meet 2018 CAR target at the end of last year.

– Contact HKEJ at [email protected]


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