What’s new: China on Friday issued a list of 19 domestic systemically important banks, which will be subject to stricter regulatory requirements because their health is seen as critical to maintaining financial stability.
The banks on the list (link in Chinese), jointly issued by the People’s Bank of China and the China Banking and Insurance Regulatory Commission, will have to comply with more stringent regulations for capital adequacy ratios and corporate governance.
Details: The 19 banks have been divided into four groups based on how important they are, with the fourth group being the most important. According to the regulators (link in Chinese), the list was designed to have five groups, but there is no bank in the fifth group of the list.
● First group
Ping An Bank Co. Ltd. (000001.SZ)
China Everbright Bank Co. Ltd. (601818.SH)
Hua Xia Bank Co. Ltd. (600015.SH)
China Guangfa Bank Co. Ltd.
Bank of Ningbo Co. Ltd. (002142.SZ)
Bank of Shanghai Co. Ltd. (601229.SH)
Bank of Jiangsu Co. Ltd. (600919.SH)
Bank of Beijing Co. Ltd. (601169.SH)
● Second group
Shanghai Pudong Development Bank Co. Ltd. (600000.SH)
China Citic Bank Corp. Ltd. (601998.SH)
China Minsheng Banking Corp. Ltd. (600016.SH)
Postal Savings Bank of China Co. Ltd. (601658.SH)
● Third group
Bank of Communications Co. Ltd. (601328.SH)
China Merchants Bank Co. Ltd. (600036.SH)
Industrial Bank Co. Ltd. (601166.SH)
● Fourth group
Industrial and Commercial Bank of China Ltd. (601398.SH)
Bank of China Ltd. (601988.SH)
China Construction Bank Corp. (601939.SH)
Agricultural Bank of China Ltd. (601288.SH)
Related: China Defines Banks That Are ‘Too Big to Fail’
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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