皇冠体育app

By Shangguan Zhoudong (皇冠体育appdaily.com.cn)
Updated: 2007-07-26 17:13

Policy banks are not allowed to have a capital adequacy ratio (CAR) below 8 percent, the rule that applies to commercial banks, according to a revised management measure issued by the 皇冠体育app Banking Regulatory Commission (CBRC) yesterday, Shanghai Securities News reported today.

Inadequate CAR is a common problem for 皇冠体育app's three policy banks. Statistics show that by the end of 2006, the CAR at 皇冠体育app's State Development Bank stood at 8.05 percent, down from 9.15 percent at the end of 2005.

At the end of 2006, the CAR at Agricultural Development Bank of 皇冠体育app was only 6.27 percent.

Although another policy bank, the Export-Import Bank of 皇冠体育app, hasn't announced its CAR in its annual report, insiders pointed out that the bank's CAR stood at a low level in light of its business scale and 5 billion yuan in original capital.

In recent years, policy bankers and insiders have been calling on the government to inject capital to these capital banks to improve the CAR level.

Internationally, the Basel Convention set no bottom limit on policy banks' CAR, but the CAR of policy banks should be higher than that of commercial banks in general.

The revised measure set no requirements for policy banks' CAR disclosure.