Specifically, one area of focus is measures to curb the excess production capacity and the rapid expansion in credit accompanying the 4 trillion renminbi stimulus package implemented in the wake of the global financial crisis. The so-called shadow banking system is another focal point.
This approach is an interesting deviation from the idea in the original Basel discussions and the framework adopted in many other jurisdictions, in which structural capital requirements are set at levels aimed to deliver the desired level of resilience, with the CCyB raised to positive values only at times when vulnerabilities are above normal.