Implementation of stringent bank capital regulations is postponed by China

Source: Bloomberg

In order to combat economic downturn in China as well back up the credit growth, the government has taken the decision to delay the implementation of stringent bank capital regulations to 2013. The China Banking Regulatory Commission has compiled preliminary rules that would allow the banks to achieve their capital objectives whilst at the same time ensuring sufficient loan growth. Chen Xingyu, Phillip Securities' analysts, stated that the banks in China are facing considerable pressure, and the government is simply attempting to assist them in regaining the capital.

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