SHANGHAI Feb 21 China's banking regulator is
letting banks in Guangdong province count negotiable
certificates of deposit maturing in more than 90 days as part of
their minimum regulatory capital requirement, three people with
direct knowledge of the move said.
Inclusion of the certificates in regulatory capital in the
southern province, allowed by the Guangdong branch of the China
Banking Regulatory Commission (CBRC), appears intended to ease
pressure on banks.
The Guangdong CBRC was not immediately available for
The three people said the CBRC has sent Guangdong banks a
circular saying the ratio of their core liabilities to total
liabilities shouldn't be less than 60 percent.
The move "is tantamount to improving the bank’s core
liabilities and easing bank’s liabilities," said one of the
people knowledgeable about the circular.
(Reporting by Shanghai newsroom; Writing by Engen Tham and
Winni Zhou; Editing by Richard Borsuk)