Chinanews Client, December 3rd. The central bank's website recently released an article "Improving the Modern Financial Supervision System" signed by Guo Shuqing, Secretary of the Party Committee of the People's Bank of China and Chairman of the China Banking and Insurance Regulatory Commission.

The article pointed out that seeking profits is a normal state of business activities.

Our ancestors have long understood that no matter what kind of industrial or financial activities are engaged in, you need to have capital first, otherwise normal operations will be impossible.

If the industrial and commercial business has insufficient capital, it will be difficult to recycle; if the financial business does not have a certain amount of capital, it will sooner or later get into trouble.

The core of the Basel Agreement is to determine the basic capital constraints on bank credit, and the leverage ratio must be within a safe range.