(Yicai Global) June 12 -- The Bank of China and the Industrial and Commercial Bank of China have gained approvals to raise up to CNY100 billion (USD14.5 billion) and CNY70 billion through the sales of preference shares.

The pair will issue up to one billion and 0.7 billion shares in the domestic market, respectively. 

The non-performing loan ratio at BOC was 1.42 percent by the end of 2018, down 0.03 percent point from the end of 2017. The ratio at ICBC was 1.52 percent as of the end of 2018, down 0.03 percent point.

Unlike common shares, preference shares function more like a bond and can be included in bank capital to reduce capital costs.

Editor: William Clegg