China Version III Basel Regulatory Standards Will Be Implemented Next Year.

As the third edition of the Basel agreement, the "China Version", a few days ago, China.

In this regard, the CBRC responsible person said that at present, the major domestic banks have reached the new regulatory standards, and the capital gap of commercial banks is very small, so there is no need to replenish capital on a large scale.

He pointed out that in the next 5 years, the banking industry will mainly meet the capital regulatory requirements through the accumulation of internal capital in banks.

Regulatory standards are stricter

According to the third edition of the Basel agreement, the opinions have taken into consideration the requirements of macro prudential supervision and micro prudential supervision, and set up three levels of supervision standards for asset adequacy ratio: one is three minimum capital adequacy requirements, that is, the core level capital adequacy ratio, capital adequacy ratio and capital adequacy ratio are no less than 5%, 6% and 8% respectively.

Among them, the domestic core tier 1 capital adequacy ratio is 0.5 percentage points higher than the third Basel agreement.

The two is the introduction of countercyclical excess capital requirements, including requiring commercial banks to measure capital based on cross cyclical risk parameters, making up 2.5% of excess capital requirements and calculating 0-2.5%'s counter cyclical excess capital.

The three is the additional capital requirement of systemically important banks, tentatively scheduled for 1%.

After the implementation of the new standard, the capital adequacy ratio of systemically important banks and non systemically important banks under normal conditions is not less than 11.5% and 10.5% respectively, which is basically in line with the domestic regulatory requirements for capital adequacy ratio (11.5% of large banks and 10% of small and medium banks).

The CBRC responsible person disclosed that the current domestic capital requirement for systemically important banks was tentatively fixed at 1%, while the Basel Committee and the financial stability Council have yet to reach a final consensus on the additional capital requirements of systemically important banks.

In addition, the opinion set the requirements for loan provision and provision coverage to 2.5% and 150% respectively.

According to the regulators, the average loan provisioning rate of domestic commercial banks is close to 2.5%, and the coverage rate of the commercial banks is as high as 230%. The ratio of the loan provision rate and the provision coverage rate has reached 50% and 85% of all banks.

"In view of the difficulties that some banking financial institutions meet with two regulatory standards in the short term, in order to avoid the resulting negative effects, the opinion gives a long period of pition, allowing such financial institutions to reach the standard by the end of 2018."

The person in charge said.

As for the new regulatory standards in China, which is shorter than the third version of the Basel agreement, the CBRC pointed out that the third version of the Basel agreement gave a longer pition period, mainly because the vast majority of European and American banks were faced with a larger capital gap and needed a longer time to adjust their business behavior. At present, most of the banks in China have reached the new regulatory standards and have the conditions to implement the new regulatory standards faster. At the same time, strict capital constraints will help to curb the potential credit risks of the long-term credit expansion of commercial banks.

There will be no impact on credit supply capability.

In the process of international financial regulatory reform since the crisis, the impact of the new regulatory standards on the macro-economy has attracted wide attention.

Studies show that raising capital regulation standards will not have a major impact on the global economic recovery on the global average.

Because China's commercial banks have better capital quality and higher capital adequacy ratio, most commercial banks have reached the new regulatory standards of capital adequacy ratio. The implementation of the new capital [1.88 1.62%] regulation standard will not have a greater impact on the credit supply ability of the banking system, and the short-term impact on the GDP growth rate is very small. The negative impact of the new capital regulatory standards on GDP growth will be further reduced by the step by step compliance.

The CBRC responsible person pointed out that the theme of China's economic development in the next 5 years is to adjust the structure and improve the quality.

Therefore, in the coming period, the banking sector should make more efforts in restructuring the credit and improving the quality of credit, which is exactly what the CBRC is expected to promote the implementation of the new regulatory standards.

However, the official pointed out that, in the long run, because domestic economic growth is very dependent on bank credit supply, in order to support sustained economic growth, the scale of bank credit needs to maintain a certain growth rate. In order to meet the regulatory requirements of capital adequacy, commercial banks inevitably face capital supplementary demand.

It should be noted that even without the implementation of new capital regulatory standards, banks are also facing the pressure of capital expansion caused by credit expansion.