trending Market Intelligence /marketintelligence/en/news-insights/trending/ebpkzbv0jwhuyujxtfqgkq2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Moody's: China's expansion of banks' capital-raising toolkit is credit positive

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory


Moody's: China's expansion of banks' capital-raising toolkit is credit positive

The Chinese financial regulators' recently announced policy to develop new debt instruments for capital and loss-absorbing capacity is credit positive for commercial banks, their depositors and senior creditors, Moody's said.

The rating agency said March 19 that the policy, which was jointly issued by China's financial regulators, will aid banks in addressing their need for more capital amid their constrained ability to generate capital internally.

The policy will also address higher regulatory capital requirements due to the full phase-in of the capital conservation buffer in 2018, as well as the shift of credit to loans from lightly capitalized shadow-banking activities, the rating agency added.

The new guidelines reinforced regulatory emphasis on the development of contractual capital instruments, including perpetual bonds, Tier 2 capital instruments with equity-conversion features, and capital bonds with a fixed date of conversion to equity. The policy also aims to develop total loss-absorbing capacity debt instruments by changing regulations and amending laws if necessary.

The policy's suggestion to streamline the approval process for banks' capital instruments by using a shelf registration with a one-time approval of an issuance quota will facilitate better planning and management of capital by banks, Moody's said.

Given the recently announced consolidation of responsibilities of various Chinese regulators, the rating agency said it expects the coordinated nature of financial policymaking to enhance supervision of bank capital and loss-absorbing capacity in order to safeguard financial stability.