Now China's banks need to raise funds
Chinese regulators have told their banks that they will have to make plans to raise capital or they may face restrictions on lending. Bank lending, which rose by an unprecedented $1.3 trillion (£785bn) in the first nine months of the year, was the main source of an emergency stimulus deployed by Beijing in 2009. But the lending spree is now worrying the government. The surge in new loans has resulted in the banks' core capital adequacy ratios plunging from just 10% last year to 8.8%, a record rate of decline, according to Credit Suisse. What the commentators said The news...
Original Article: Forum: News/Activism
Tags: Banks, Beijing, Capital Adequacy, China, Commentators, Core Capital, Credit Suisse, Decline, First Nine Months, Loans, Main Source, Months Of The Year, Ratios, Regulators, Spree, Stimulus, Trillion, X27