China raises capital requirement for top five banks: report
April 26, 2011 2:14 PM EST
China has increased capital requirements for its five biggest banks above the minimum 11.5 percent mark to guard against risks in the banking sector, Bloomberg reported on Tuesday.
Citing three sources with knowledge of the matter, Bloomberg said Industrial & Commercial Bank of China <601398.SS> <1398.HK>, the world's biggest bank by stock market value, was told last month to have a capital adequacy ratio of at least 11.8 percent.
Three other rivals of Industrial & Commercial Bank of China were told the same, with Agricultural Bank of China <601288.SS> <1288.HK> as the exception -- it was told to have a ratio of 11.7 percent.
The three other top Chinese banks are China Construction Bank <601939.SS> <0939.HK>, Bank of China <601988.SS> <601988.SS><3988.HK>, and Bank of Communications Co Ltd <3328.HK> <601328.SS>.
An official in the press office at the China Banking Regulatory Commission, contacted by Reuters on Tuesday, denied that capital adequacy ratios had been raised for the banks.
A document obtained by Reuters in February showed China's banking regulator could raise the capital adequacy ratio for banks to as high as 14 percent.
A 14-percent level would be 250 basis points above the minimum 11.5 percent mark, and would be implemented as an additional counter-cyclical requirement if the regulator thinks credit growth is abnormally strong.
(Reporting by Koh Gui Qing; Editing by Ken Wills)
Most Popular Slideshows
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- National Ice Cream Day: Most-Ordered Flavors and Toppings by Americans [See Photos]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
- Photos from the Crash Site of Malaysia Airlines MH17 In Ukraine
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Fresh Leak Hints iPhone 6 Price and Release Date; 4.7-Inches iPhone 6 Sapphire Display Scratched in Test; New Spigen Cases Out
- iPhone 6 2014 Release Date Very Soon as Apple Orders 120M New iPhones from Foxconn – Report
- Google Nexus 6 on Release Date Will Sport 2K Display Panel & Lower Price Tag – Report
- Motorola Moto G Vs. Xiaomi Mi3 – Low in Price, High -level Features
- FCC Approves Sony Xperia Z3 for U.S. Market
- Killer Xiaomi Mi4 at $369 Likely to Come With 5.0-Inch Display, Snapdragon 801 Processor, 3GB RAM and More
- End of Times Indicators: Japan’s Mount Fuji in ‘Critical State’ to Erupt, Could Affect At Least 1.2M People