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2012-06-07 11:46:12
China has said it will delay the implementation of tougher capital rules for banks until January next near amid concerns that they may hurt lending.
The rules would increase the minimum cushion of capital a bank must keep to absorb losses on their loans.
There were fears that such a move may curb lending at a time when Beijing has been trying to boost growth amid a slowdown in its economy.
China had planned to introduce the rules at the start of this year.
The banks will be given a reasonable transition period to meet the new capital requirements "to help maintain appropriate credit growth", China's cabinet said in statement on its website late on Wednesday.
'Effectively serve'
China has used lending as a key tool to spur growth in its economy in recent years. As it faces a slowdown in its economy, Beijing has been trying to boost lending again in a bid to boost demand and sustain growth.
China's economy grew at an annual rate of 8.1% in the first three months of the year, the slowest pace in almost three years.
There are fears that growth may slow even further, not least due to ongoing economic problems in its key export markets such as the US and eurozone.
Those concerns have seen China reduce the amount of money banks need to hold in reserve three times in the past few months in an attempt to give more cash to banks to lend to consumers.
On Wednesday, it introduced fresh measures to try and boost lending to small and medium-sized companies, which are one of the biggest contributors to growth.
The cabinet said it would lower the risk weighting assigned to loans given to such companies when calculating the cushion of capital a bank must keep.
It said the move was designed to "expand the small micro-enterprises and personal loans to more effectively serve the real economy".