China plans for Basel II
(13 April 2006 – China) China will implement Basel II compliancy for its banks with the greatest level of international exposure from 2010.
China banking Regulatory Commission said international experience demonstrated that improvement in banks’ internal mechanisms was vital for "improving their vitality".
But the regulator admitted achieving this was "still an arduous and long task".
Basel II addresses the amount of capital banks must put aside to prevent any economic shocks like major borrowers defaulting on loans. The accord will be introduced between 2008 and 2011.
Some 75 percent of China’s overall banking assets have met the eight percent capital adequacy standard implemented under the current Basel rules but all Chinese banks must achieve this by the end of this year.
But the regulator admitted achieving this was "still an arduous and long task".
Basel II addresses the amount of capital banks must put aside to prevent any economic shocks like major borrowers defaulting on loans. The accord will be introduced between 2008 and 2011.
Some 75 percent of China’s overall banking assets have met the eight percent capital adequacy standard implemented under the current Basel rules but all Chinese banks must achieve this by the end of this year.
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