After lending spree, China's banks gear up to raise capital

11/24/2009 | Financial Times (tiered subscription model)

BNP Paribas estimated that China's 11 biggest listed banks will need to raise $43 billion or more to meet regulatory requirements after a period of unprecedented lending. Regulators in China have warned that they will sanction banks that do not meet capital-adequacy requirements, prompting several banks to prepare plans for fundraising. Regulators are "definitely aware of potential asset-quality issues and ... pushing for higher capital-adequacy requirements to offset deterioration in asset quality", said BNP Paribas analyst Dorris Chen.

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