CBRC: Bank capital adequacy ratio reached 11.4% at the end of September

After five rounds of consultation, the guidelines on the disclosure of the capital adequacy ratios of trade banks (hereinafter referred to as "the Guidelines") were finally released yesterday.　　The guidelines, to be implemented on January 1, 2011, will require banks to reveal a series of information, including the changes in paid-in capital or common stock and other capital instruments, in a timely manner. The guidelines will apply to new capital accord banks and other trade banks that have voluntarily implemented the new capital Accord, as defined in the guidance on the implementation of the new capital agreement in China's banking industry.　　According to reports, the first batch refers to the establishment of diplomatic relations between workers and peasants and the National Development Bank, China Merchants Bank. "The capital adequacy ratio meets the requirements," the CBRC said, releasing the guideline in order to further standardize the disclosure of the capital adequacy ratio of trade banks and further promote the implementation of the new capital Agreement. At present, the CBRC has issued the first batch of 5 relevant guidelines for the new capital Agreement, published the second batch of 8 draft.　　The guidelines were one of the first to be published in 8 draft submissions. Compared with the current governance measures for the capital adequacy ratio of trade banks, the guideline has mainly increased the deduction of capital, such as net deferred tax assets, impairment reserve gap, risk exposure of asset securitization to be deducted and so on.　　This will no doubt directly reduce the absolute amount of static capital of trade banks, which may lead to a fall in capital adequacy ratios.　　Observers point out that thus, with the combination of a surge in credit and the need for a bank's overlapping subordinated debt to be deducted from capital, trade banks that need to implement new capital agreements are likely to increase their capital directly next year through debt or refinancing to meet regulatory requirements for capital adequacy ratios.　　According to the data released yesterday by the CBRC, by the end of the three quarter of 2009, domestic trade banks had a weighted uniform capital adequacy ratio of 11.4%, a weighted uniform core capital adequacy ratio of 9%, and overall capital adequacy levels in line with prudential regulation. The figures give the market a little reassurance.　　　　The market has been concerned that banks would be able to raise large funds because they could not reach the regulatory level for capital adequacy requirements. Timely commencement of loan enforcement inspection and the CBRC will be more interested in risk issues.　　Yang Jiacai, a director of CBRC banking supervision, said December 15 in the Chinese Banking Association Bank of the forefront of the topic of the lecture hall, the bank supervision part will be timely on the "Fixed Assets loan management interim measures" and "project financing business Guidelines" and other loan business governance new regulations to implement law enforcement inspection, investigate violations.　　It can be seen that the CBRC held a meeting recently to request the supervision of the two methods of implementation of the above-mentioned measures as an important part of the 2010 on-site inspection, focusing on the investigation of the borrower to violate the rules, to avoid the loan payment and other acts. In addition, the CBRC Discipline Secretary Wang yesterday in the Chinese Banking Association syndicated loans and Transactions of the first annual Meeting and international symposium, to strictly control the ratio of single customer loans and group customer credit ratio, encourage through syndicated loans to strengthen the concentration of risk management.