China central bank lists 19 systemically important banks

China central bank lists 19 systemically important banks
Headquarters of the People’s Bank of China (PBOC), the central bank, is pictured in Beijing, China, Sep 28, 2018. (File photo: Reuters/Jason Lee)

BEIJING: China’s central bank and banking regulator on Friday (Sep 9) jointly unveiled a list of 19 banks for 2022 that are regarded as systemically important, as part of efforts to protect the financial system.

The list of banks includes six state-owned commercial banks, nine joint-stock commercial banks and four city commercial banks, a statement released from the People’s Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC) said.

Systemically important banks face additional capital requirements of between 0.25 per cent and 1.5 per cent, as well as additional leverage requirements.

The regulators will also enhance supervision of systemically important banks to promote their stable and healthy operation and development, the statement said.

Joint-stock commercial bank China Minsheng Banking will be subject to a higher additional capital requirement of 0.5 per cent from 0.25 per cent, the statement showed, the only bank on the list to face a different capital requirement versus last year.

Other banks on the list include four of the country’s biggest banks: Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and Bank of China.

It also includes mid-sized banks such as China Everbright Bank and Ping An Bank.

Source: Reuters/ng