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 , 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.
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, the list was designed to have five groups, but there is no bank in the fifth group of the list.
