China banking regulator to broaden capital tools for commercial banks

The China Banking Regulatory Commission (CBRC), China’s banking regulator said on Monday it will broaden tools for commercial banks to replenish their capital to boost their ability to support economic growth, Reuters reports.

Key Highlights:

The CBRC is amending rules for commercial banks to issue perpetual bonds, convertible capital instruments, and other innovative loss-absorbing debt instruments.

The move will increase banks’ ability to deal with external shocks.