This time banks are expected to (or already have instituted, it actually isn't clear from the article) raise the assigned risk weightings from 50% to 100% for loans covered by cash flows and to 300% for those not.
China’s Risk-Weighting Rule May Cut Banks’ Capital
The government is trying to limit risks stemming from last year’s surge in loans to local-government finance vehicles for roads, bridges and railroads. Chinese banks may struggle to recoup about 23 percent of the 7.7 trillion yuan ($1.2 trillion) credit they’ve extended, a person with knowledge of data collected by the industry regulator said in July.
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