China Suspends Capital Adequacy Rules Indefinitely

Reuters reports that a source at the China Banking Regulatory Commission has said that China will put new capital adequacy rules on hold, citing concerns about the impact on economic growth. The Chinese rules were set to be stricter than Basel III, with a compliance deadline of 2013 for big banks. However, Reuters reports that there are now no schedules and deadlines for implementation. The story comes after a number of announcements suggesting that policy in some emerging markets is shifting towards growth, and further indicates the concerns of policymakers about possible tensions between growth and stability.

Originally Published: 
14/12/2011