Mar
09
China Plans Stricter Bank Capital Rules to Contain Risks
By-
PBOC would remove intermediary MPA capital adequacy category
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Move seen pushing banks to raise capital, slow asset growth
China’s central bank plans to apply a stricter method for assessing banks’ capital as part of efforts to contain financial-sector risks, people with knowledge of the matter said.
Under the proposed change to the so-called Macro Prudential Assessment framework, the People’s Bank of China will remove an intermediary category in its evaluation of banks’ capital adequacy, the people said, asking not to be identified because the matter is private. That means banks would either get a full score if they meet capital requirements, or a zero score if they fall short, according to the people…
China Plans Stricter Bank Capital Rules to Contain Risks
