China’s four biggest banks are among lenders who have been set differentiated reserve requirement ratios, said Liu Mingkang (劉明康), chairman of the China Banking Regulatory Commission (CBRC).
Liu didn’t specify whether all four banks or only some were targeted, nor by what margin they were ordered to raise ratios. The regulator spoke to reporters while attending the closing session of the National People’s Congress in Beijing yesterday.
Liu didn’t say when the differentiated reserve requirement ratios were imposed or whether they are still in place.
Central bank officials, including Governor Zhou Xiaochuan (周小川), have said that they will use differentiated ratios in addition to the universal reserve requirement to curb lending. Under the system, individual lenders are told to hold differing amounts as reserves according to capital adequacy levels and lending growth.
The nation’s biggest four banks are Industrial & Commercial Bank of China Ltd (ICBC, 中國工商銀行), China Construction Bank Corp (中國建設銀行), Bank of China Ltd (中國工商銀行) and Agricultural Bank of China Ltd (中國農民銀行).
TARGETED BANKS
The People’s Bank of China has imposed differentiated reserve requirement ratios on 40 banks since January, Xinhua news agency -reported last month, citing an unnamed spokesman at the central bank. China has increased the overall reserve requirement for banks twice this year and raised interest rates once in a bid to curb inflation.
RAMPANT GROWTH
The 40 lenders targeted were local lenders, which had lower capital adequacy ratios and “rampant” growth in lending, Xinhua said, citing the spokesman. China’s central bank hasn’t publicly disclosed which banks were targeted and by how much their reserve requirements were raised.
Bank of China hasn’t been selected for the differentiated requirement, bank president Li Lihui (李禮輝) said in Beijing on March 5.
Liu also said yesterday that outstanding loans to the financing vehicles of local governments are now “under control” and that the banking regulator will closely monitor the situation.
The central bank has raised banks’ reserve requirement ratio eight times since the beginning of last year, excluding any extra requirements for individual lenders not publicly announced. The ratio now stands at 19.5 percent for the biggest banks.
Chinese banks extended 535.6 billion yuan (US$81.5 billion) of -local-currency loans last month, the central bank said yesterday. That was less than the 600 billion yuan median estimate in a Bloomberg News survey of 19 economists.
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
SEMICONDUCTOR SERVICES: A company executive said that Taiwanese firms must think about how to participate in global supply chains and lift their competitiveness Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it expects to launch its first multifunctional service center in Pingtung County in the middle of 2027, in a bid to foster a resilient high-tech facility construction ecosystem. TSMC broached the idea of creating a center two or three years ago when it started building new manufacturing capacity in the US and Japan, the company said. The center, dubbed an “ecosystem park,” would assist local manufacturing facility construction partners to upgrade their capabilities and secure more deals from other global chipmakers such as Intel Corp, Micron Technology Inc and Infineon Technologies AG, TSMC said. It
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17
EXPORT GROWTH: The AI boom has shortened chip cycles to just one year, putting pressure on chipmakers to accelerate development and expand packaging capacity Developing a localized supply chain for advanced packaging equipment is critical for keeping pace with customers’ increasingly shrinking time-to-market cycles for new artificial intelligence (AI) chips, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said yesterday. Spurred on by the AI revolution, customers are accelerating product upgrades to nearly every year, compared with the two to three-year development cadence in the past, TSMC vice president of advanced packaging technology and service Jun He (何軍) said at a 3D IC Global Summit organized by SEMI in Taipei. These shortened cycles put heavy pressure on chipmakers, as the entire process — from chip design to mass
RSS