China Mulls Raising Capital Ratio for Big Banks

China's regulatory commission will soon require the mainland's biggest banks to raise their capital ratios (CAR), reports The Standard. How much the raise will be is still unknown.


Large banks are currently required to have CAR of at least 11.5%, and smaller banks 10%.


"It is necessary to raise the bar for the mainland's big lenders to catch up with the global level," the The Standard quotes Liu Mingkang, chairman of the China Banking Regulatory Commission as saying. Liu points out that Britain, Singapore and Hong Kong raised CAR requirements to 12-16 percent after the financial crisis.




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