Reporter Du Xiaojin.
On November 28, according to the China Bond Information Network, the bidding for the special bonds for supporting the development of small and medium-sized banks in Henan Province in 2023 has been completed, and the actual issuance scale is 28.2 billion yuan. According to incomplete statistics from the reporter of China Banking and Insurance News, since the beginning of this year, Liaoning Province, Anhui Province, Guangdong Province and other provinces have issued special bonds to support the development of small and medium-sized banks, with a total issuance of more than 180 billion yuan.
According to the disclosure, the actual issuance scale of this special bond in Henan Province is 28.2 billion yuan, which is consistent with the planned issuance scale, with an issuance period of 10 years and a coupon rate of 301%, interest paid semi-annually. The bonds are used to support 19 rural commercial banks, including Xinzheng Rural Commercial Bank, Gongyi Rural Commercial Bank, Yiyang Rural Commercial Bank, and 7 rural credit cooperatives, a total of 26 small and medium-sized banks to replenish capital. From the perspective of capital injection, Henan Investment Group will adopt the method of indirect access to capital injection.
The reporter found that since the beginning of this year, 15 provinces (autonomous regions and municipalities directly under the central government) such as Heilongjiang, Guangxi, Ningxia and Liaoning have issued a total of 17 special bonds for small and medium-sized banks, with a total issuance of more than 180 billion yuan. From the perspective of support objects, the rural credit system has received greater support. For example, Sichuan issued 5.4 billion yuan of special bonds for small and medium-sized banks, of which 1.7 billion yuan was used to support rural commercial banks and rural credit cooperativesGuizhou issued 5 billion yuan of special bonds for small and medium-sized banks to replenish capital to 21 rural small and medium-sized banking institutionsGuangxi Zhuang Autonomous Region issued 8.4 billion yuan of special bonds for small and medium-sized banks for 21 rural commercial banks, rural credit cooperatives and rural cooperatives in the local rural credit system.
Since the 2020 executive meeting decided to allow local governments to explore new ways to reasonably supplement the capital of small and medium-sized banks by subscribing to convertible bonds and other means in accordance with laws and regulations, local governments have been very enthusiastic about issuing special bonds for small and medium-sized banks. According to incomplete statistics from reporters, the actual issuance scale of special bonds of small and medium-sized banks in 2020 will be 50.6 billion yuan, the actual issuance scale in 2021 will be close to 160 billion yuan, and the actual issuance scale in 2022 will be 63 billion yuan. The scale of issuance this year has far exceeded the level of last year.
The supplementary capital of commercial banks mainly includes endogenous and exogenous methods. Endogenous is mainly based on its own retained profits;Exogenous supplements include capital increases, IPOs, convertible bonds, private placements, perpetual bonds, preferred shares, and Tier 2 capital bonds.
Special bonds are one of the important ways for small and medium-sized banks to replenish their capital. In March this year, the document issued by the former China Banking and Insurance Regulatory Commission mentioned that in order to promote the replenishment of capital by small and medium-sized banks, the regulatory authorities, together with the financial department, have supported 20 provinces (regions) to issue 550 billion yuan of local ** special bonds in three years to supplement the capital of more than 600 small and medium-sized banks.
As an important part of China's financial system, small and medium-sized banks have faced urgent pressure on capital replenishment in recent years. According to data disclosed by the State Administration of Financial Supervision and Administration, as of the end of the third quarter of this year, the capital adequacy ratio of commercial banks nationwide was 1477%, the capital adequacy ratios of urban commercial banks, private banks, and rural commercial banks are lower than the overall level of the industry, respectively07%。
According to Fitch Bohua's Quarterly Tracker Report on China's Banking Sector (H1 2023) released in October, Tier 2 capital bonds and perpetual bonds are important channels for banks to replenish their external capital, and the downward pressure on small and medium-sized banks' capital is expected to be eased with the continued release of special bonds in the second half of the year and the centralized issuance of special bonds by small and medium-sized banks.
A number of experts told reporters that the capital replenishment of small and medium-sized banks should be "both internal and external". "A long-term mechanism for capital replenishment of small and medium-sized banks should be established, and capital replenishment should be carried out through a combination of internal and external sources. Dong Ximiao, chief researcher of Zhaolian Financial, said that the financial management department should strengthen coordination, coordinate and cooperate, and continue to strengthen the support for banks to supplement capital.
*: China Banking and Insurance News.