core CAR should be at least 5 percent.

The draft rules are open to public comment until Aug. 25. ,adidas f50





Industrial and Commercial Bank of China (SSE: 601398;HKEX:1398), China Construction Bank (SSE:601939;HKEX:0939), Bank of China (SSE:601988;HKEX:3988) and Agricultural Bank of China, retain about 60 to 70 percent of subordinated debt in cross-holdings, the report estimated.
(Caijing.com.cn) China's major commercial banks are required to meet a minimum 7 percent core capital adequacy ratio as a prerequisite for issuing subordinated debt under the regulator's draft rules, China International Capital Corp. said in an Aug. 24 report.
State-owned commercial banks, joint-stock banks and China Development Bank - formerly a policy bank - are subject to the 7 percent requirement, CICC said.
Complied by Caijing staff
Commercial banks can choose to transfer their holdings of subordinated debt to non-banking institutions instead of lowering lending to offset the possible impact of the new rules.

For major commercial banks, the quota of subordinated debt issues should not surpass 25 percent of an issuer's core capital. For other banks,franklin marshall, the issue quota is capped at 30 percent.



For other banks,chaussure louboutin pas cher, core CAR should be at least 5 percent.
But the 'big four' have relatively high CARs; small and medium-sized lenders would be most affected by the change in rules,ralph lauren pas cher, the report said.
Listed commercial banks' outstanding subordinated debt is likely to reach 376.6 billion yuan by the end of the year,adidas foot, CICC said.
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A draft regulation raises the minimum capital requirement for major banks to issue debt amid central bank concerns about lending risk.

The proposed requirements will also increase banks' issuing costs, implying banks with high core CARs can attract more clients and boost market share, the report said.


The CBRC also requires that issues of banks' subordinated debt and hybrid bonds should mainly target non-banking institutions,polo ralph lauren pas cher, CICC said.
1 yuan = 14 U.S. cents
From wires
The draft rules issued by the China Banking Regulatory Commission also require commercial banks to deduct the full value of their holdings of subordinated bonds issued by other banks from their Tier-2 capital.
The change of rules concerning Tier-2 capital calculations will lower banks' capital adequacy ratios by 0.6 percentage point and curb potential lending of 600 to 700 billion yuan,adidas football chaussures, CICC said.
Previously,chaussure louboutin, the maximum issue was set at 50 percent of a bank's core capital.
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