In September, the listed banks replenished the blood of 240 billion through secondary capital bonds, leading the total amount by 8 months

category:Finance
 In September, the listed banks replenished the blood of 240 billion through secondary capital bonds, leading the total amount by 8 months


Issuance of 240 billion yuan of secondary capital bonds in a single month is on fire again!

Wind data shows that listed banks issued 240 billion yuan of secondary capital bonds in September, involving joint-stock banks and large state-owned banks, including China Construction Bank, Shanghai Pudong Development Bank, Bank of China and industrial and Commercial Bank of China.

Source: wind

According to the statistics of China Securities Jun, the scale of secondary capital bonds issued by listed banks from January to August this year was 238 billion yuan, compared with 80.5 billion yuan in the same period last September. This means that in September 2020 alone, the issuance scale of secondary capital bonds of listed banks will exceed that in the first eight months of this year.

At the same time, on September 22, CCB, which had just successfully issued 65 billion yuan of secondary capital bonds, announced that the board of directors agreed that CCB would issue no more than 160 billion yuan equivalent secondary capital tools to supplement the banks secondary capital with the approval of the general meeting of shareholders and relevant regulatory authorities.

Dong Chunxiao, an analyst at Pacific Securities, believes that there are three reasons for CCBs continuous issuance of secondary capital bonds: first, the credit supply was strong in the first half of the year, capital consumption was fast, and the capital adequacy ratio of CCB declined. Second, the growth of endogenous capital is difficult to meet the needs of business development, and external financing is imperative. In order to ensure that the capital adequacy ratio is at a high level, it is imperative to issue secondary capital instruments for capital supplement. Third, the current issuance rate of secondary capital instruments is lower than that of last year. Capital replenishment is conducive to the long-term development of banks. It can not only supplement capital, but also appropriately reduce debt interest rate.

Zhongzheng Jun noted that Guosheng securities analyst Zhang Wei predicted in May that the bank would continue to issue about 500 billion secondary capital bonds this year. Judging from the current progress, the target of 500 billion has exceeded.

TLAC regulatory pressure is approaching

Affected by the epidemic, the willingness of banks to replenish capital this year is very strong. Guosheng Securities said the epidemic has had a huge impact on the real sector, and the real economy needs more credit support. As the main channel of credit in China, banks will accelerate the expansion of assets, which will bring pressure on capital.

In addition to the epidemic factors and interest yielding real economy, Guoxin Securities believes that the non-standard return table and the approach of TLAC supervision also increase the urgency of banks to supplement capital. Under the impact of the epidemic, the progress of off balance sheet financial management pressure drop of banks in the first half of the year has slowed down to a certain extent. At the same time, the central bank announced to extend the transition period of new capital management regulations to the end of 2021, but on the whole, the non-standard return statement will still accelerate banks With the consumption of capital and the increase of provisions, the pressure of some banks to supplement capital may not be fully released. In addition, a new round of TLAC regulatory requirements for global systemically important banks is on the way. As early as 2022, four industrial and agricultural banks have to meet the regulatory TLAC ratio of 19.5% to 20% of risk assets, which further intensifies the urgency of capital replenishment.

Source of TLAC adequacy ratio requirements: Guoxin Securities

It is reported that in November 2015, the leaders of the group of 20 (G20) approved the provisions on the total loss absorption capacity of global systemically important banks submitted by the Financial Stability Board (FSB), which formally defined the international uniform standard of total loss absorption capacity. As of November 2019, industrial and Commercial Bank of China, Agricultural Bank of China and Construction Bank have been listed in the list of global systemically important banks by FSB. Zhongzhengjun noted that many investors have already asked big banks how to meet the regulatory requirements of TLAC on the interactive platform. It is worth mentioning that on September 30, the central bank, together with the China Banking and Insurance Regulatory Commission, drafted the measures for managing the total loss absorption capacity of global systemically important banks (Draft for comments), which officially solicited opinions from the public. This version is also known as the Chinese version of TLAC. Some insiders predict that the pressure on capital replenishment of the four major banks will be further increased, and several other large banks may also enter the regulatory framework of global systemically important banks. (the original title is the listed banks in September are busy with tonifying blood , and this kind of financing is 240 billion! This big business still has 160 billion on its way.)_ NF5619

It is reported that in November 2015, the leaders of the group of 20 (G20) approved the provisions on the total loss absorption capacity of global systemically important banks submitted by the Financial Stability Board (FSB), which formally defined the international uniform standard of total loss absorption capacity. As of November 2019, industrial and Commercial Bank of China, Agricultural Bank of China and Construction Bank have been listed in the list of global systemically important banks by FSB.

Zhongzhengjun noted that many investors have already asked big banks how to meet the regulatory requirements of TLAC on the interactive platform.