Bank of China eyes more cash, may need $15 bn: Sources
Published on Mon, Nov 23, 2009 at 14:37 | Source : Reuters
Updated at Mon, Nov 23, 2009 at 14:44
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Bank of China eyes more cash, may need $15 bn: Sources
Bank of China is in talks with investment banks to raise money to meet Beijing's new capital guidelines, sources familiar with the matter said on Monday, in what could be a roughly USD 15 billion fund raising effort.
Bank of China is in talks with investment banks to raise money to meet Beijing's new capital guidelines, sources familiar with the matter said on Monday, in what could be a roughly USD 15 billion fund raising effort.
China's banking regulator has urged big state lenders to raise their capital adequacy ratios to 13% next year after rapid loan expansions in 2009, according to an earlier report by Reuters on Monday.
Bank of China's current capital adequacy ratio, a key measure of financial strength, is about 11%, with at least one analyst saying that the ratio would likely go down to 10% next year.
To meet the 13% guideline, Bank of China would have to raise around 100 billion yuan (USD 14.6 billion), according to sources.
The sources were not allowed to speak publicly about Bank of China's plans. The bank declined to comment.
