在线国产一区二区_成人黄色片在线观看_国产成人免费_日韩精品免费在线视频_亚洲精品美女久久_欧美一级免费在线观看

Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Finance

Special bonds to augment capital needs of small, medium-sized banks

By JIANG XUEQING | China Daily | Updated: 2021-01-13 09:38
Share
Share - WeChat
A banner for Guangxi Beibu Gulf Bank is seen on an advertising board along the airport highway linking Guangxi Nanjing Airport in Nanjing, Guangxi Zhuang autonomous region, on April 6, 2009. [Photo/IC]

Special-purpose bonds issued recently by some local governments in China will help increase the capital supply for small and medium-sized banks and improve their ability to ward off risks and better serve small businesses, experts said.

The Inner Mongolia autonomous region's department of finance issued a 5.5 billion yuan ($849-million) bond and a 3 billion yuan bond on Dec 30-both with a maturity of 10 years-to help Bank of Inner Mongolia Co Ltd and Ordos Bank Co Ltd replenish tier-1 capital requirements.

Similarly, the Guangxi Zhuang autonomous region issued 10-year special-purpose bonds totaling 11.8 billion yuan on Dec 25 in support of 21 small and medium-sized banks, including Guangxi Beibu Gulf Bank Co Ltd, Bank of Liuzhou Co Ltd and Guilin Bank Co Ltd.

On the same day, Zhejiang Provincial Department of Finance also issued a 5 billion yuan bond to replenish the capital of Bank of Wenzhou Co Ltd by indirectly holding its shares via Wenzhou State-owned Financial Capital Management Co Ltd.

A State Council executive meeting on July 1 said that China will allow special local government bonds to appropriately support small and medium-sized banks in replenishing capital.

Compared with large banks, small and medium-sized banks-a major financial force at the local level to support small businesses-are weaker in terms of capital strength and less capable of attracting deposits, which in turn affects their lending capacity and limits their ability to serve micro and small enterprises, said Dong Ximiao, chief researcher at Merchants Union Consumer Finance Co Ltd.

Capital replenishment is an important measure to strengthen the abilities of lenders to withstand risks and serve the real economy, the part of a country's economy that produces goods and services. Therefore, the government should support small and medium-sized banks to replenish capital through diversified measures, including the issuance of new types of capital instruments, Dong said.

The capital adequacy ratio (CAR) of China's city commercial banks was 12.44 percent in the third quarter, down from 12.56 percent in the second quarter. During the same period, the CAR of the country's rural commercial banks dropped from 12.23 percent to 12.11 percent, according to the China Banking and Insurance Regulatory Commission.

"Small and medium-sized banks will face capital challenges if the government does not issue bonds to support their capital replenishment, because private-sector investors are less enthusiastic about investing in these types of banks due to concerns about risks and a possible surge in their nonperforming loans," said Lian Ping, chief economist of Zhixin Investment.

"To fundamentally solve the problems of small and medium-sized banks, China should improve their corporate governance by diversifying their shareholding structures so that their business strategies, operation and management will be based on market-oriented principles, rather than being largely affected by local government policies," Lian said.

So far, small and medium-sized banks have provided a considerable amount of loans to local government-backed projects, many of which have low liquidity, he said.

As the Chinese economy is in the process of recovering, the business conditions of banks may improve in the second half of this year. Small and medium-sized banks should take this opportunity to attract private-sector investments by lowering the proportion of shares held by State-owned shareholders, he said.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 丁香婷婷激情 | 欧美国产一区二区 | 爱福利视频| 激情综合五月婷婷 | 黄色av大片 | 午夜精品福利视频 | 日韩在线一区二区三区 | 久久超 | 三级福利视频 | 国产中文字幕在线播放 | 黄色影音| 日本免费高清视频 | 精品久久免费视频 | 人人艹人人 | 精东影业一区二区三区 | 国产精品成人免费视频 | 一区二区三区免费 | 国产一区二区欧美 | 狠狠五月天 | 女人黄网站 | 欧美三根一起进三p | 亚洲欧美一区二区三区四区 | 国产视频www | 九九久久久 | 欧美日韩在线播放 | 九九精品免费视频 | 亚洲精品综合 | 4虎最新网址 | 久久久久亚洲精品 | 中文字幕在线视频播放 | 国产逼逼 | 国产午夜精品视频 | 三级视频网站 | 国产在线观看网站 | 黄色av大片| 在线观看国产一区 | 黄色录像免费看 | 欧美顶级黄色大片免费 | 久久黄色录像 | 欧美一级在线视频 | 欧美特黄一级片 |