Last week in Shanghai and Shenzhen stock market, and peripheral markets out of distinct market, stock index-cycle occurs more than 2 per cent decline in European and Asian stocks most copyright the index also increased, reaching an adjustment since mid-April. A major reason, a very large extent on the Basel Agreement States investors III will affect banking chanel classic flap investment value. Chinese investors worry that this agreement will result in large banks again faced huge capital needs complementary, causing massive for Bank stock sell-off, while foreign investors is a many-to-eight-year capital added buffer time is satisfied, and that the lifting of the banking sector the greatest uncertainties, thereby promoting the bank stocks. Basel Agreement significantly improves on III Bank core capital requirements, this is a global financial regulators from this financial crisis in the most profound lessons: only with the Bank's own capital in order to ensure that the global financial system crisis, the banking industry still have to absorb losses and to maintain sustainable asset management capabilities. According to the China Banking Regulatory Commission Louis Vuitton officials disclosed data, end of June, the domestic large, medium and small banks average capital adequacy 11.1 per cent, the core capital adequacy rate of 9 per cent, the core capital ratio of the total capital of more than 80 per cent. You can see, the Bank of China (601988) industry capital adequacy, in particular to ordinary share master core capital adequacy levels much higher than overseas counterparts, in the short term, there is no obvious pressure. But the medium and long term, due to China's economic development speed, possible bad debts corresponding to the rate could be higher capital losses for the absorption of the cushion is higher, maintain overseas markets higher capital adequacy level, or will be the future regulation in order to achieve the prim
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According to some media reports, the CBRC consider prior to promulgation of rules including: capital adequacy level of minimum core, level of capital adequacy, total capital adequacy requirements are 6 per cent and 8 per cent, 10 per cent of the additional capital buffer requirements include 0%-4% of the remaining buffer capital and counter-cyclical buffers capital if necessary, up to 5 percent, meet this requirement deadline for 2012. The importance of system bank may attach 1 percent of the capital adequacy requirements. The proposed minimum loan loss provisions total loan Replica Handbags ratio was allegedly 2.5 loan loss provisions bad loans to 150 percent higher, the system should in 2012 the importance the Bank prior to the end of the request, the other Bank of the final implementation period to 2016. Because of this new formulation in the Basel Agreement III before the final version, so put the Bill still needs according to the latest revision of agreements, but it is not difficult to see, the Basel Agreement, the CBRC established China's own standards have improved, if 2.5 per cent of the capital buffer and 0-2.5 counter-cyclical regulatory capital requirements, many banks are currently faced with a very large capital added pressure on the market concerned.
Our bank stocks since last year, is trapped in capital adequacy standards requirements, and only this year, several major State-owned banks have separately through Designer Handbags and allotment of shares, convertible bonds, and other means from the capital markets to raise funds for the Asian investors had significant short-term costs. Original investors believe that bank stocks in this round of financing with pressure-will, however, the adoption of Basel III means that previous recapitalization of the Banking Act, however, is the future of mass recapitalization of the first step, it is clear that investors face the uncertainty further increased.From raising capital adequacy to handle future financial risk perspective, banking really need massive capital, with a healthy banking system, is also China's future economic health. However, taking into account the capacity of the capital market, at present the majority of the Bank's capital adequacy ratio is far out of the Basel Accord III at the Hermes Bags request of the first phase has had significant financing banks short term is not suitable for large-scale capital to continue to lead. The CBRC will consider in the Basel Agreement III set aside for the banking industry for 8 years, depending on the buffer time of China's banking industry, as soon as possible setting out a suitable for China's national conditions for capital adequacy requirements of the phased timetable for Chinese banks to provide a better capital supplementary guidelines. After all, in the next few years in stages of financing, whether they be to alleviate the pressure on the market, or in order to obtain better financing price, will be useful.
First of all let's take a look at why the global financial industry regulation requires strict reflection on the 2008 u.s. subprime mortgage crisis, as well as in the first half of 2010, the Europe loan crisis in the financial industry mixed operation, risk monitoring threshold is too low, the banking industry leverage ratio is too high, the proliferation of financial innovation, financial income is too high to ignore long-term risks caused cratering was the culprit. Therefore, the Basel Agreement III on global financial risk supervision on the chanel classic flap threshold of early warning mechanisms. It should be said that Western Governments on banking supervision and interventions, the global financial markets has won the confidence of the foreign exchange market and stock markets will have a positive reaction. However, why does A stock market on the Basel Agreement III "negative reactions? why have reached agreement on the new Basel on the requirements of Chinese banks have significantly recapitalization? why Bank unit price-earnings ratio is very low there will still be the next step? why just listing of ABC, the impossible has once again increased the superior or break.