China May Relax Bank Capital Requirements
Date: 19 January 2012
Source: Bloomberg
Bloomberg reports that China is weighing a plan to relax capital requirements at its five largest banks. This comes less than a month after it was reported that Chinese officials have put plans for stricter capital adequacy rules on indefinite hold, amid signs that China is reorienting policy towards growth in response to a slowdown over 2011. The relaxation would be designed to lower the risk-weights attached to loans to small businesses, according to Bloomberg’s sources. Beyond China-specific factors, the move would reflect broader trends in emerging markets, where policy priorities appear to be far more growth-oriented than elsewhere (click here to view the ICFR Regulatory Outlook 2012).