Chopping down loan loss reserves is another form of de-regulation. #SystemicRisk
China’s banking regulator has softened rules requiring lenders to set aside provisions against losses on bad loans, to encourage banks to provide more trustworthy assessments of their health. ft.com/content/4cc6ee… 
"The new rules bring China closer to international standards. Most countries force banks to set aside provisions equal to between 50% and 100% of NPLs, according to research by Dong Ximiao, senior analyst at the Chongyang Institute for Financial Studies in Beijing. "
unroll please
