BEIJING (Reuters) – China published rules on Friday that require its systematically important banks to beef up capacity to absorb losses to head off financial instability.
Those banks, which include the country’s four biggest state lenders, must meet specific total loss-absorbing capacity (TLAC) targets from 2025, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, and the Ministry of Finance said in a joint statement.
The move is aimed at improving the risk-disposal mechanism at big Chinese lenders, controlling irrational business expansion and curbing the accumulation of systemic risks, they said.
(Reporting by Cheng Leng and Ryan Woo; editing by John Stonestreet)
