China’s largest banks are to see a reduction in the capital measures needed to comply with Basel III regulations, and bring them in line with the international community.
As China’s largest state-owned banks, Bank of China, China Construction Bank, Industrial and Commercial Bank of China and Agricultural Bank of China are classed as globally significant. The banks must comply with the People’s Bank of China’s requirement to have a minimum total loss-absorbing capacity of 16 per cent on risk-weighted assets by 2025, rising to 18 per cent by 2028.
