China

Potential management transitions could sink BOC and ICBC's NPLs.

China’s evolving financial system has required the central bank to change its tools. Capital outflows and the gradual liberalization of the yuan mean that the era of sterilized intervention is ending. A new governor could move the PBoC towards a more conventional market-based policy, although the overall policy stance is still expected to be set by the government for the foreseeable future. Monetary policy in China has traditionally had three levers: interest rates, reserve ratios and the currency. The State Council (made up of the premier, vice premiers, and heads of various government departments, including the central bank) decides on lending and deposit rates, while the People's Bank of China has discretion over commercial bank reserve ratios. Each can influence policy on the currency, although the State Council has the final say.

Whilst there was general agreement on the need to reform the global financial system after the 2007 financial crisis, the impact of the revised regulations published in 2009 by the Basel Committee on Banking Supervision (BCBS) has been felt far and wide.

It could increase to 50% in 2014.

Mainland banks lent out CNY530b of new loans.

Two top banks enter into agreement worth up to US$2 billion.

Western candidates wanting to work in China’s banking capital, Shanghai, should first get to grips with how regulatory change is creating an increasing number of niche jobs for foreigners.

The key is more diversified income sources.

The rules will be implemented from 1 January 2013.

Check out what Barclays has to say.

That is lower than October's CNY220b.

To become third largest BEA shareholder.

Interest rate reform will continue shaving margins.

Top investment banks ask the BoE to provide a swap line.

Still manageable said the China Banking Regulatory Commission.

Total debt is a staggering US$24 billion.