Banking regulator raises lending quota

| BY

clpstaff &clp articles

Move is part of larger efforts to stabilise the economy

After record-setting lending growth in Chinese banks in the first quarter of 2009, China's banking regulator has begun a closer watch over the flow of new loans, with tightened supervision on corporate governance and risk control.

Speaking at a recent meeting held at the Chinese Academy of Social Sciences, China Banking Regulatory Commission (CBRC) chairman Liu Mingkang mentioned new regulatory requirements for capital adequacy ratio and provision coverage ratio at the main Chinese banks. The capital adequacy ratio must now be higher than 12%; provision coverage ratio needs to be improved to 150% by the end of the year, he said.

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]