China's banking regulator Wednesday released a draft of a regulation covering bank liquidity risk management, which it said is aimed at curbing possible banking risks.

Under the China Banking Regulatory Commission's draft regulation, commercial banks will have to maintain a minimum liquidity coverage ratio of 100% from no later than 2013. This will oblige banks to have sufficient high-quality liquid assets to cover cash needs for at least 30 days. The regulation contains several other new provisions, including a minimum "net stable assets ratio" with which banks must comply by the end of 2016. The regulation will come into effect Jan. 1, 2012, the CBRC said.

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