The China Banking Regulatory Commission (CBRC) has suspended to the second half of 2012 a planned implementation of new, tougher criteria for commercial lenders.

Citing an unidentified source, the China Daily reported the current global as well as domestic economic conditions and looser monetary policies prompted CBRC to move until at least July the new regulations.

Earlier in 2011, the CBRC had already informed the whole of China a new set of rules placing tougher and stricter criteria for lenders' capital adequacy ratios (CAR) will be instituted at the beginning of 2012. These included large lenders required to achieve a CAR of 11.5 per cent and a core CAR of 9.5 per cent.

Analysts said the delay should not be taken as financial regulations being loosened.

"It is a normal counter-cyclical adjustment. When economic growth accelerates, it's necessary to require lenders to have a higher CAR than the international standard," economist Lu Zhengwei told China Daily. "When the economy has increasing downside risks, it's better to go back to the international criteria, which are still relatively high," he said.

Another analyst expressed concern the new banking regulatory policies contradict the government's looser monetary policies, noting banks might waver giving to lenders to achieve capital criteria.

"Tougher criteria imposed on lenders will probably counter the effect of official monetary policies," economist Cao Yuanzheng said.

"However, financial regulation has to act in concert with monetary policy to support the real economy, which actually produces goods and services," he said.