New rules to bolster Chinese banks

Wen Bin, chief economist with China Minsheng Bank, said the new measures consider both the need to align with international standards and the existing domestic situation, which will be conducive to further refining banks’ risk weight calculations and risk management.

“The new measures will help commercial banks optimize their business structure, improve management and governance, and build up data and digital infrastructure,” Wen said.

“At the same time, thanks to the transition period, the new rules won’t bring about much capital pressure on banks.”

Zeng Shengjun, a senior researcher at the Shenzhen, Guangdong province-based Greater Bay Area Financial Research Institute of Bank of China, said the Central Financial Work Conference has clarified requirements on strengthening financial supervision.

He predicted that commercial banks would increase credit support for areas such as…