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CN NAFR Propounds to Raises Core Tier-one Capital of 6 Large Commercial Banks
Li Yunze, director of China’s National Administration of Financial Regulation (NAFR), said at a press conference held by the State Council Information Office that large comme...
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CN NAFR Propounds to Raises Core Tier-one Capital of 6 Large Commercial Banks
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Li Yunze, director of China’s National Administration of Financial Regulation (NAFR), said at a press conference held by the State Council Information Office that large commercial banks are the mainstay of the mainland's financial system serving the real economy, and the main regulatory indicators of large commercial banks are in a healthy range.

In recent years, such banks have mainly relied on retaining their own profits to increase capital, said Li, however, as banks continue to increase profit-sharing and profit growth slows, it will be necessary to strengthen the core tier-one capital of the six large commercial banks.

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This will be implemented in an orderly manner in phases and batches, and large commercial banks will be continuously urged to improve their refined management and strengthen their ability of high-quality development under capital constraints.

Li also revealed that the financial asset investment companies set up by large commercial banks in the early stage have already launched pilot equity investment in Shanghai, and now the conditions for expanding the pilot are in place.

According to the relevant arrangements of the State Council, the proposed measures include expanding the scope of the pilot cities, studying the expansion of the pilot scope to 18 large and medium-sized cities with active technological innovation, appropriately relaxing the amount and restrictions on equity investment, increasing the proportion of on-balance sheet equity investment from 4% to 10%, and optimizing the assessment mechanism and establishing a long-term differentiated performance assessment.

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