New Basel accord does not hinder Chinese banking

8-year transitional period stimulates overseas Bank stock rally ⊙ journalist Zhu Zhouliang after nearly nine months of negotiations and haggling, Basel III, which aims to strengthen capital requirements for the global banking system, was finally released last weekend. According to a new agreement agreed 12th by the 27 member economies of the Basel Committee on Banking Supervision, by January 2015, the minimum level of first-tier capital adequacy for commercial banks around the world would be raised to 6% from the current 4% per cent, while the "core" level of capital from common stock would have increased significantly to a lower limit of bank risk assets, reaching 7 %, which includes a 2.5% capital retention buffer. The current core-level capital adequacy limit is only 2% per cent.　　In addition, the new agreement also makes a more rigorous definition of bank capital and risk assessment.　　But the new deal also sets a longer transition period for banks to implement new buffer-capital rules, which can be phased out between January 2016 and January 2019.　　Analysts generally agree that the short-term impact on banks is limited by the 8-year transition period that has been adopted by the latest Basel agreement.　　As a result, overseas banking stocks surged in Monday.　　In the Asia-Pacific market, Japan's biggest bank, Mitsubishi Japan, and the Bank of Australia's giant federal banks rose by more than 1.5% per cent, while major banking stocks rose in the European market after the opening, with HSBC holding and Société Générale rising at 1.1% to 3.3%. However, the experts also cautioned that once the new capital Agreement entered into the implementation phase, some of their own problems more banks may face greater financial pressure.　　Verink, Chairman of the Basel Committee on Banking Supervision, said global banking might need to raise hundreds of billions of dollars of new capital in the future. For China, experts say the impact of the new banking regulations is not obvious. The new Basel accord will have little impact on China's banking industry, even if it is implemented immediately, according to a report by Sanford-Bernstein analyst Wiener 13th. He noted that as of June 30, the capital adequacy ratios of the seven mainland banks listed in Hong Kong had exceeded the new rules. The China Banking Regulatory Commission (CBRC) currently has a 11.5% bottom line for domestic large banks, while the core capital adequacy ratio is 7%. For more details, please cover six.