Three more banks are allowed to issue capital instrumentsEarncryptogameios!
The capital instruments issuance plans of Huaxia Bank, Guangzhou Agricultural Merchants Bank and Guangdong Nanhai Agricultural Merchants Bank were all approved a few days ago, with a total quota of no more than 95 billion yuan, according to administrative license information disclosed on the official website of the State Administration of Financial Supervision on May 20.
Three bank capital instrument issuance plans approved
Specifically, the General Administration of Financial Supervision recently approved that Huaxia Bank should issue 80 billion yuan of capital instruments, which are open-ended capital bonds. The bank may independently determine the time, batch and size of the issue within the approved quota, and complete the issue within 24 months after the approval.
On May 14 and May 15, Guangdong Regulatory Bureau successively approved that Nanhai Agricultural and Commercial Bank of Guangdong should issue capital instruments of no more than 3 billion yuan, and Guangzhou Agricultural and Commercial Bank of China should issue capital instruments of no more than 12 billion yuan.
Within the approved quota, both agricultural and commercial banks may independently decide on the specific tool variety, issuance time, batch and scale, and complete the issue within 24 months after approval.
The Guangdong Regulatory Administration also said that both banks should formulate and constantly improve medium-and long-term capital replenishment plans suited to their own development strategies and management capabilities, strengthen capital management, strengthen capital constraints, and ensure the economical and effective use of capital.
A number of banks were approved one after another during the year
According to the official website of the General Administration of Financial Supervision, in addition to the above three, since the beginning of this year, a number of banks, such as Guangfa Bank, Bohai Bank and Bank of Guangzhou, have been approved for the issuance of capital instruments.
For example, in March this year, Guangfa Bank was approved to issue 76 billion yuan of capital instruments, including secondary capital bonds and open-ended capital bonds; Bohai Bank was approved to issue 15 billion yuan of capital instruments; Guangzhou Bank was approved to issue capital instruments of no more than 4 billion yuan (including) RMB.
In this regard, Zhou Maohua, a macro researcher in the Financial Markets Department of Everbright Bank, said that in recent years, some banks have been affected by the complex business environment, and the slowdown in profit growth has affected the replenishment of endogenous capital. instead, they will issue capital instruments to replenish capital, enhance risk resistance, enhance credit expansion, and better meet the requirements of relevant regulatory indicators.
At the same time, some small and medium-sized banks have a more urgent need for capital replenishment.
Zhou Maohua further pointed out that some small and medium-sized banks are faced with difficulties such as insufficient endogenous financing capacity, narrow channels for exogenous liabilities, weak brand effect, lack of advantages in network, high debt and overall operating costs, and great competitive pressure in the industry. capital strength and anti-risk ability are also relatively weak.
"on the one hand, we need to speed up risk disposal and improve internal governance, scientifically formulate development strategies, improve the level of management and risk control, and enhance our own hematopoietic ability; on the other hand, we need to innovate capital supplement tools and broaden the channels of capital supplement." Zhou Maohua said.
"it is expected that the supplementary capital requirements of some small and medium-sized banks are still strong." Zhou Maohua believes that appropriately increasing the supply of capital tools for some small and medium-sized banks will help to meet the market demand for high-quality asset allocation. In the future, we also need to actively enrich the supplementary capital tools of small and medium-sized banks to support the healthy and sustainable development of small and medium-sized banks.
In addition, Societe Generale Research has estimated that the net issuance of capital instruments of listed banks will be at least 1 in 2024.EarncryptogameiosFrom .68 trillion to 1.92 trillion yuan, the net issuance of capital instruments in the whole market will be at least 1.87 trillion to 2.13 trillion yuan.
(article source: China Fund Daily)
