BarCap scrutinizes China's stricter risk-weighting rules

12/22/2010 | Bloomberg

Barclays Capital said capital-adequacy ratios and profits of banks will be reduced because of China's higher requirements for risk weighting on more than a trillion dollars worth of loans to governments. BarCap said the China Banking Regulatory Commission is significantly increasing risk weightings for such loans. "Regulatory uncertainties on reserves and capital ratios are major overhangs holding back China bank shares this year," analysts wrote.

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