China has issued new rules that seek to improve the ability of the country's global systemically important banks (G-SIBs) to absorb losses and adhere to the global regulatory standards on capital adequacy and liquidity by Jan 1, 2025, as part of the ongoing efforts to prevent systemic financial risks.
The People's Bank of China, the central bank, and the China Banking and Insurance Regulatory Commission, the banking regulator, said that banks which have been designated as G-SIBs by the Financial Stability Board, an arm of the G20, would have to comply with the Basel Committee requirements on "total loss-absorbing capacity", or TLAC, to ensure that they have enough equity and bail-in debt.
No comments:
Post a Comment