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Today: Jun 13, 2024

Bank of China boosts bonds to meet global capital requirements.

1 min read

TLDR: The Bank of China is planning to sell $21 billion worth of bonds in order to comply with global capital requirements. The bank will tap both domestic and overseas debt markets to sell a new category of total loss-absorbing capacity (TLAC) bonds. This move is aimed at strengthening the bank’s balance sheet and ensuring that it has enough capital to withstand potential financial shocks. The Bank of China is one of several Chinese lenders that are taking steps to comply with stricter capital rules set by global regulators. The bank’s bond sales are expected to take place in the next few months, and the funds raised will be used to bolster its capital cushion. This move comes as the Bank of China and other Chinese banks face increasing pressure to raise funds and improve their risk management practices. The bank’s decision to issue TLAC bonds is seen as a proactive step to address potential risks and strengthen its overall financial position. In addition, the bond sales will provide an opportunity for investors to invest in one of the largest banks in China and potentially earn a higher yield compared to other types of bonds. Overall, the Bank of China’s bond sales are a significant move towards ensuring compliance with global capital requirements and strengthening its financial position in an increasingly challenging environment.