China’s banks are preparing to raise tens of billions of dollars in additional capital next year and beyond to meet regulatory requirements following an unprecedented expansion of new loans in 2009. The country’s 11 largest listed banks must raise at least Rmb300bn ($43bn) to meet more stringent capital adequacy requirements and maintain loan growth, according to BNP Paribas. The lending surge led to a record fall in their core capital adequacy rates from just over 10% at the end of 2008 to 8.89% by end-September. See also FT Alphaville.

This entry was posted by Gwen Robinson on Wednesday, November 25th, 2009 at 4:41 and is filed under Capital markets. Tagged with china. Edit this entry.