CBRC: The minimum capital adequacy ratio for large banks is 11%

Provisioning coverage requirements increased to 150% author Zhang Zhahui 4th, in the latest issue of China Finance, Wang, vice chairman of China Banking Regulatory Commission, published the article "A number of issues concerning the safe and stable development of China's financial system", the paper clearly points out that the CBRC's minimum capital adequacy ratio for small and medium banks is 10%,　　The Minimum capital adequacy requirement for large banks is 11%. In late November, there were rumours that the CBRC would raise the capital adequacy ratio to 13% for large banks, and the CBRC clarified the rumours that the CBRC had no such requirement.　　Later, the market will also need to carry out hundreds of billions of financing news, which directly led to a slump in the volume of the day last week.　　Analysts said that the regulator's lower than expected capital adequacy ratio, so that large commercial banks to eliminate the financing gap, triggering the 4th investors on the banks, such as the pursuit of heavy weight shares.　　According to the statistics, the capital adequacy ratios of ICBC, Bank of China, Construction Bank and Bank of communications were 12.6%, 11.63%, 12.11% and 12.57% respectively, which exceeded 11% in the three quarterly data. Wang in the article pointed out that the regulatory institutions in accordance with the macro-economic changes in the establishment of dynamic capital and dynamic provisioning requirements, in addition to differential regulation of the minimum capital adequacy ratio of commercial banks, the provision of coverage requirements from the past 100% to 130%, and now further increase to 150%,　　The intention is to make the banking system safer and more robust by requiring banks to turn their profits into capital and provision to protect against future potential risks, increase their ability to anticipate and not anticipate losses, and improve the financial viability of their banks in times of credit expansion and better bank profitability. He pointed out that the regulator attaches great importance to trans-market risk transmission, the illegal access of credit funds to the stock market and real estate. A housing loan policy with counter-cyclical characteristics is developed, low down payment and preferential interest rate policies for the first and improved housing for the residents, higher down payment ratio for other loans with speculative properties, cancellation of interest rate concessions, and even on the basis of market interest rates, to curb speculation and bubbles in the real estate market.