CBRC Solicited Opinions On Commercial Banks' Leverage Ratio Management Measures

The China Banking Regulatory Commission (CBRC) issued a "commercial bank leverage ratio management (Draft)" 20 days ago, which stipulates that the leverage ratio of commercial banks should not be lower than 4%. CBRC The responsible person said that the implementation of the measures will guide commercial banks to strengthen the management of leverage ratio, effectively control the degree of leverage, and maintain the safe and stable operation of commercial banks.

The measures were solicited as of May 27th. The "measures" require that the CSI's systemically important banks reach the minimum leverage requirement before the end of 2013, and non systemically important banks reach the minimum leverage requirement by the end of 2016.

The "measures" stipulate that the leverage ratio refers to the ratio of the balance between the first level capital and the commercial bank's adjusted balance between the inside and outside assets held by commercial banks. Among them, tier one capital and Tier one capital The deduction is the first class capital and first class capital deduction for commercial banks to calculate capital adequacy ratio in accordance with the relevant provisions of the CBRC. Adjusted tables inside and outside Balance of assets After deducting the first tier capital deduction, the balance of the balance in the table plus the adjusted balance of off balance sheet items is adjusted.

The measures also stipulate the disclosure of leverage. The disclosure of leverage information of commercial banks should include at least the level of leverage, first tier capital, first tier capital deduction, adjusted balance sheet assets, adjusted balance sheet and adjusted balance sheet assets. The way and frequency of leverage information disclosure is implemented according to the regulations on the management of information disclosure of commercial banks, that is, commercial banks should disclose leverage information within four months after the end of each accounting year.

The head of the CBRC said that the implementation of the measures will guide commercial banks to strengthen the management of leverage ratio. On the one hand, it will help prevent excessive expansion and excessive risk taking of financial institutions' balance sheets and control the irrational growth of the leveraging level of the banking system and the continuous accumulation of systematic risks. On the other hand, it will help to make up for the possible defects in the internal risk management model of banks, prevent commercial banks' capital arbitrage, and ensure that the entire financial system maintains a certain level of qualified capital.

In addition, the person in charge said that at present, the implementation of the measures will bring some capital pressure to a few banking financial institutions in the short term. However, due to the corresponding spanitional period, the impact of the measures is generally limited. Through the implementation of the measures, it is helpful to supervise the banking financial institutions that fail to meet the regulatory requirements, reduce the degree of leverage, improve the level of sound operation, and control the leveraging degree and systemic risks of the banking system. (