Banking Regulators Tap Brakes on New Rules

China has reached a stage of industrial and urban development with vigorous demand for mid- and long-term financing, Huang said. At this point, he said, regulator should lower risk-weighted assets requirement for commercial banks' mid- and long-term loans.

Through its rule-making, CBRC is "laying a foundation to prevent systemic risk," said a risk management executive at a state-owned bank. It's true that bankers and regulators play games, he said, but there's a need to balance economic development and financial stability, systemic risk and international competitiveness.