Banks ordered to raise liquidity coverage ratios

Chinese commercial banks' liquidity coverage ratios must reach 100 percent by 2018 to strengthen them against the risks of credit crunches, the China Banking Regulatory Commission said on Wednesday in a new liquidity management regulation.

The target ratio is set at 60 percent this year, rising by 10 percentage points annually until 2018, the same transitional period specified in the Basel III accord.

The CBRC's regulation will take effect on March 1.