--FILE--Vue sur le stand de Bank of Communications lors d'une exposition à Shanghai, Chine, 23 novembre 2013. Avec des banques face à un shortf capital
--FILE--View of the stand of Bank of Communications during an exhibition in Shanghai, China, 23 November 2013. With banks facing a capital shortfall due to new regulatory requirements, Chinas top-five lenders plan to raise 270 billion yuan (US$43.3 billion) through innovative financing instruments this year, according to PricewaterhouseCoopers. The big-five banks are the Industrial Bank and Commercial Bank of China, China Construction Bank, the Agricultural Bank of China, the Bank of China and the Bank of Communications. They plan to replenish their capital through writedown bonds, also known as Basel bonds, which are regulatory capital containing writedown provisions that impose losses on investors if the banks financial condition deteriorates beyond certain thresholds. Although the top lenders met the China Banking Regulatory Commissions regulatory threshold for capital adequacy ratio last year, their ratios have since declined in light of the new requirements, PwC said in a report yesterday (22 April 2014).
