New Capital Rules Aim to Bring Chinese Banks in Line With Global Standards

Chinese financial authorities are setting up a new system to regulate commercial bank capital based on lenders’ total assets and overseas business, in a bid to increase compliance with international standards while helping smaller banks flourish.

The China Banking and Insurance Regulatory Commission (CBIRC) and the central bank published a draft of the new framework on Saturday and are now taking public feedback. The draft includes amendments to the current rules that have been in effect for 10 years.