New rules for the world's most stringent banking capital

Some in the industry worry that if tighter capital rules are too soon to be imposed, the banks ' willingness to lend will be greatly curtailed, hurting the economic recovery.　　In recent decades, the largest reform in the field of banking regulation has been formally stepped up. According to the PBoC's website yesterday, 27 member economies agreed on Basel III at the management meeting of the Basel Committee on Banking Supervision on September 12.　　Under the agreement, commercial banks must raise their capital ratios to strengthen their ability to withstand financial risks.　　In fact, according to the industry, the entire "Basel III" in the bank capital composition, asset quality, absolute level, total leverage (capital as a proportion of total assets) and liquidity indicators have put forward higher requirements.　　However, market participants generally believe that the majority of domestic banks, especially listed banks, have met the requirements of the new regulations, which are less affected than overseas banks, benefiting from the stringent requirements of capital adequacy ratio and provision coverage.　　The central bank said it expects the leaders of the group of 20 (G20) to ratify Basel III at the G20 summit in Seoul, South Korea, in November this year.　　The minimum level of capital adequacy will rise to 6% the Basel Committee on Banking Supervision, comprising 27 national banking regulators and senior representatives of the central bank, announced 12th that the parties agreed on the contents of the Basel III agreement.　　As of January 2015, the floor of the global commercial banks ' first-level capital adequacy ratio would be raised from the current 4% to 6%, and the "core" level of capital from common stock would rise from 2% to 4.5% per cent of the bank's risk assets. The first level capital, also known as the core capital, refers to all equity capital and open reserve, including common stock, which is the constituent part of bank capital.　　The core capital includes Paid-in capital, capital reserves, surplus reserves and unallocated profits.　　In addition, banks should establish "capital protection buffers", which should not be less than 2.5% per cent of risky assets, which will be implemented in phases from January 2016 to January 2019. As banks have been criticised in the financial crisis, global banking regulators are committed to strengthening risk control. The Basel Committee, which has been mulling Basel III since last December, is the biggest overhaul of banking regulation in recent decades, said Maryfrancesmonroe, chairman of the American Banking Association. But everyone will actually feel the impact of the new deal in the future.　　and other data suggest that this could require overseas bankers to raise $ hundreds of millions of trillion in new capital over the next 10 years. Has little impact on the Bank of China "the temporary impact on the Chinese banking sector is small, given that the bank's capital targets are basically meeting the requirements of the new agreement, and if the regulator is regulated under new Basel III requirements," he said.　　"Bank of international banking analyst Shan said. Due to the current ChineseThe banking regulatory system is relatively independent and under strong supervision by the regulatory authorities, the capital adequacy ratios of state-owned banks and small and medium-sized banks are at the forefront of the world.　　This year, the data show that the 16 listed banks have a core capital adequacy ratio of more than 6%, in addition to the Agricultural Bank, Everbright Bank and Huaxia Banks, the index is still hovering between 6.4% to 6.72%, the other 13 listed banks are more than 7%.　　At present, the core capital adequacy ratio of ICBC, Bank of China and Construction Bank has been over 9%, and the Beijing Bank and Nanjing Bank are more than 10%.　　As the IMF's special assistant, Zhu Min, says, Asian financial firms generally have a higher level of capital adequacy ratios than their counterparts in Europe and the United States. "In addition to the core capital adequacy ratio, other domestic bank indicators have basically reached the requirements of the new Basel rules."　　Shang, general manager of Risk policy Management headquarters of Pudong FA Bank, said.　　Scholar Zishing should not be overly regulated it is worth mentioning that China's banking concerns may not come from the remote Basel III but rather worry that regulators are mulling a series of new indicators of "early regulation" in order to keep up the level of risk regulation. For example, before the market rumors: in order to curb the day of credit, the CBRC is discussing the banks in accordance with the reduction of the total amount of loans to 2.5% of the ratio (that is, the provision/total loan ratio) of the provision.　　News spread, banking analysts generally believe that the move, if implemented in the short term, on domestic banks, especially joint-stock banks, such as the impact of the second half of the year, Ningbo bank profits or be wiped out.　　Yesterday, however, media sources close to the regulator said it was only a child of a series of new regulatory instruments to be introduced by the CBRC, and that the CBRC could now be mulling more stringent regulatory measures. This is fraught with concern.　　There are also a few people in the industry who hold different views. "What is applicable overseas does not necessarily apply to China," said a shanghai-based banker. "There are few derivatives in China, not to mention a similar large scale of foreign business, too stringent regulation that can only limit the development of China's banking sector," the person said. "In addition, many people in the industry have suggested that in the long run, the improvement of regulatory standards will help the banking industry to develop, but time will need to be postponed to reduce unnecessary impact on the banking sector." After all, the current economic situation is still uncertain, too early to improve regulation may or discourage bank lending enthusiasm, and hurt the economic recovery.