China sets capital requirements for financial asset investment firms

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 31 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 66%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

China regulator publishes capital management rules for financial asset investment firms

SHANGHAI :China on Friday tightened rules on companies that conduct debt-to-equity businesses for banks, setting capital adequacy requirements for so-called financial asset investment firms.

Such companies"should have ample capital to deal with group, individual and systemic risks", the China Banking and Insurance Regulatory Commission said in a statement. The new rules require a minimum capital adequacy ratio of 8 per cent. The floor of Tier 1 CAR and core Tier 1 CAR are set at 6 per cent and 5 per cent, respectively.

The rules also set requirements on leverage, and urge the companies to set aside counter-cyclical capital during certain circumstances. Regulators issued the notice of the rules to China's Big Four banks and financial asset investment firms.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines