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Clifford Chance

Clifford Chance


China's Implementing Rules on the New Regulatory Standard for the Banking Industry – Stricter than Basel ‎III

28 September 2011

The China Banking Regulatory Commission has published a number of rules to regulate its banking industry in accordance with the new international standards under Basel III.

Guiding opinions have been issued to outline the general principles, main objectives, transitional arrangements and working requirements for the implementation. Measures specifically regulating the leverage ratio of commercial banks were also issued to control the extent of leverage used to ensure smooth operation of business effective from 2012. Rules to monitor the calculation of regulatory capital of banking financial institutions were also presented for public consultation.

This briefing looks at these developments in detail, as well as regulations applicable to systemically important banks, and discusses the potential impact of implementing Basel III in China.

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