MNI BRIEF: China To Recapitalise Six Large State-owned Banks
China plans to increase the core tier-one capital of six major commercial banks to strengthen their capacity to serve the economy and enhance their stable operations, Li Yunze, head of the National Financial Regulatory Administration told reporters on Tuesday.
As lenders continue to increase efforts to reduce fees and support the economy, their net interest margins have narrowed, and profit growth has slowed, therefore, a coordinated approach involving both internal and external channels to replenish the capital are required, he argued.
Li also added NFRA authorities would introduce further measures to support the real-estate market by calling on lenders to provide loans to developers, and provide other initiatives to support small businesses.