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"Tough capital requirements and costly I.T. systems make it difficult for new entrants".
Several Chinese banks, among them Minsheng and China Merchants Bank, may need fresh equity to meet tough capital standards.
The tough capital controls and domestic monetary regulations that had buttressed the old fixed-rate system were accordingly swept away.
That means a rate rise is less likely to attract the dreaded "hot money" — though China's tough capital controls anyway make that something of a paper tiger.
The case for this indirect subsidy for lending has not been made explicit.Nonetheless, this claim might explain politicians' aversion to tough capital requirements.
UBS could move the headquarters of its investment bank to London to avoid tough capital requirements being planned by the Swiss authorities, according to reports in the US.
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Banks loathe the thought of tougher capital requirements, calling it a "surcharge".
The proponents of tougher capital standards are said to have been the United States, Britain and Switzerland.
Firms considered too big to fail face tougher capital and liquidity rules.
Congress has given regulators the authority to impose tougher capital requirements on the banks.
In reality, however, banks would probably do less wholesale borrowing to avoid the tougher capital requirements.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com