Since November, China Construction Bank, Bank of Communications, etc. have successively announced the successful issuance of second-tier capital bonds to further raise the level of capital adequacy ratio. The “Commercial Bank Capital Management Measures” formulated by the State Financial Supervision and Administration and announced on November 1 will soon be officially implemented. Institutions believe that in the future, the scope of secondary capital supplements for banks is expected to expand, and the average capital adequacy ratio will rise steadily. An analysis by Minsheng Securities indicates that after the implementation of the “Capital Measures”, the scope of secondary capital supplements for banks is expected to expand. The measure makes it clear that in addition to the current excess loan loss provisions can be included in tier 2 capital, it also stipulates that non-credit asset excess loss provisions can also be included in tier 2 capital. Considering the additional upper limit requirement, the agency estimates that currently out of 42 listed banks, 9 companies still have room to benefit from this change. (via reference)
A number of banks issued second-tier capital bonds to raise the level of capital adequacy
Breakings · 11/29/2023 03:59
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