Banks likely to face troubles raising capital.

By bne IntelliNews December 7, 2011
China's banks are likely to face troubles raising capital, given their limited financing choices in the short term. As reported by Dow Jones Chinese Financial Wire, Qian Wenhui, a vice president of Bank of Communications Co. stated that the new regulatory requirements under the Basel III system include stringent requirements covering banks' capital adequacy ratios, thus posing new challenges and pressures on the banks. The country's key banks are required to have capital adequacy ratios of 11.5%, which is lesser for smaller banks. The nation's systematically important banks are required to have a minimum core-capital adequacy ratio of 9.5% by 2013.

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