China increases capital requirement for largest banks

China’s banking regulator has raised capital requirements for the nation’s five biggest lenders above the minimum 11.5% ratio, on concerns that risks may rise, Bloomberg reported. Citing three people with knowledge of the matter, the Industrial & Commercial Bank of China (601398.SH, 1398.HK) – the world’s largest lender – and three rivals were told in March to have capital adequacy ratios of at least 11.8%. Agricultural Bank of China (601288.SH, 1288.HK), China’s fourth largest lender, was told to adopt an 11.7% target. The move is part of wider attempts by policy makers to curb loan growth. This month the central bank increased the level of deposits lenders must set aside to the highest in at least two decades, and a new round of stress tests were conducted on property loans.