Banking

China mulls tougher capital rules for big banks

(Agencies)
Updated: 2010-12-30 10:27

SHANGHAI?- Tougher capital rules may be required for China's biggest lenders that are systemically important,?Reuters reported Thursday.?

Higher capital adequacy ratio targets for big banks are also required to build up counter-cyclical capital buffers in the banking system, Liu Mingkang, chairman of the China Banking Regulatory Commission (CBRC), was quoted by China Securities Journal as saying on?Dec 29, the report said.?

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The CBRC is currently studying new regulations for financial institutions that are considered "too big to fail," said Liu.

The next step is to enhance precaution measures to prevent financial institutions from employing business structures that are overly complicated and to reduce the risk of moral hazard in the system, the report cited Liu as saying.