CBRC: New Regulations On Capital Management Will Not Lead To Bank Financing

The CBRC's "capital management measures for commercial banks (Draft)" promulgated by the China Banking Regulatory Commission on 15 may require that the capital adequacy ratio of systemically important banks and non systemically important banks should not be less than 11.5% and 10.5% respectively.

On the same day, the head of the relevant departments of the China Banking Regulatory Commission pointed out that the Bank of China (601988) could bear the requirements of the new regulation of the capital management, and it would not cause the banking industry to go to a large scale or a large area.

The official pointed out that the implementation of the measures is intended to guide banks to pform their development mode, pay more attention to asset quality and structure, and speed up pformation to small and micro enterprises and retail business.

The measures reduce the risk weights of small and micro enterprises' loans and personal loans from 100% to 75%, and give the difference between the first suite and second suites of residential mortgage loans.

According to the third Basel agreement, the capital regulation requirements are divided into four levels: the first level is the minimum capital requirement, the core level capital adequacy ratio, the first capital adequacy ratio and the capital adequacy ratio are 5%, 6% and 8% respectively; second times are reserved capital requirements and counter cyclical capital requirements; Reserve capital requirements are 2.5%; reverse cycle capital requirements are 0-2.5%; third level is the additional capital requirement of systemically important banks, 1%; fourth level is second pillar capital requirements.

The responsible person said that in order to ensure the smooth implementation of new capital regulatory standards by the domestic banks, the "measures" stipulate that the systemically important banks should reach the standard by the end of 2013, and the non systemically important banks should reach the target by the end of 2016. For those banks with difficulty, the CBRC can appropriately postpone the deadline until the end of 2015. However, the systemically important banks must not be later than the end of 2015, and the non systemically important banks should not be later than the end of 2018.

Data show that the capital adequacy ratio of domestic commercial banks has improved significantly and the capital constraint mechanism has been constantly improving.

At the end of 6 2011, 311 domestic banks all met the regulatory requirements of capital adequacy ratio, the weighted average capital adequacy ratio reached 12.2%, and the core capital adequacy ratio reached 9.92%.

The official said that the quality of domestic bank capital was significantly higher than that of European and American banks.

Therefore, the new regulation of capital management and the improvement of capital quality standards have little impact on domestic banks.

The official said that in recent years, the rapid expansion of domestic commercial bank credit, the concentration of credit investment has increased, the loan period is longer, the proportion of medium and long-term loans has increased, the systemic risk has increased, and potential risks can not be ignored.

With the gradual development of cross - border and cross - border business of commercial banks, uncertainties and new risks are increasing.

To this end, the measures abolish preferential treatment for overseas and domestic public enterprises.