China Said to Plan Raising Ratio If Credit Excessive

China may order its biggest lenders, including Industrial & Commercial Bank of China Ltd. and China Construction Bank Corp., to raise capital ratios to as high as 14 percent when credit growth is judged excessive, said a person familiar with the matter.

Newly proposed rules would require increasing capital adequacy buffers by as much as 2.5 percentage points when the banking regulator determines loan growth to be too fast, said the person, declining to be identified as the plan isn’t public. In normal conditions, lenders deemed systemically important will need to have a minimum 11.5 percent ratio, unchanged from the current requirement for China’s biggest banks, said the person.