Economic highlights for this week
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Follow the stock market. Get the updates you need to make sense of the dynamic, global economy. China.org.cn brings you the economic highlights for this week:
1. Zhou Xiaochuan: China may raise financial institutions'capital requirements
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Zhou Xiaochuan Governor of PBOC |
China needs to adopt a "cautious macroeconomic framework" and should require financial institutions to boost their stores of capital, People’s Bank of China Gov. Zhou Xiaochuan said on Friday in a speech at the Lujiazui Forum in Shanghai. Large, systematically important bank especially should be subject to higher capital requirements, Zhou said. China’s banking regulator announced new rules earlier this month bringing the country’s banking sector into step with the new global banking regulatory framework, Basel III. Under the new regulations, systemically important financial institutions will need to maintain a minimum capital adequacy ratio of 11.5 percent, and other financial institutions must sustain a capital adequacy ratio of 10.5 percent. The new rules will begin to take effect in 2012, with banks expected to meet the requirements by 2016.
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