Banking

Chinese banks' Q3-end capital adequacy ratio up to 11.6%

(Xinhua)
Updated: 2010-11-05 14:39

BEIJING - Chinese commercial banks' capital weighted adequacy ratio (CAR) had risen to 11.6 percent at the end of the third quarter, up 0.5 percentage points quarter-on-quarter, the China Banking Regulatory Commission (CBRC) said Friday.

The figure was 0.3 percentage points higher than at the beginning of the year, the CBRC said in a statement on its website.

The weighted core capital adequacy ratio of Chinese banks was 9.5 percent at the end of September, up 0.5 percentage points quarter-on-quarter and 0.4 percentage points from the beginning of the year.

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Chinese banks plan to boost their capital bases after China's central bank moved last month to tighten market liquidity with a 0.25 percent interest rate hike.

China Construction Bank, China's second largest lender by assets, said Tuesday it will raise 61.62 billion yuan ($9.21 billion ) in a dual rights issue in Shanghai and Hong Kong to improve its capital base.

Bank of China (BOC), China's fourth-largest lender by assets, said last Friday it will raise up to 60 billion yuan ($8.97 billion) in a dual rights issue in Shanghai and Hong Kong to boost its capital base.

Industrial and Commercial Bank of China, the country's largest bank, also plans a rights issue for the near future.