Resolve the risk of small and medium-sized banks and support the special debt line of small and medium-sized banks by 200 billion yuan

category:Finance
 Resolve the risk of small and medium-sized banks and support the special debt line of small and medium-sized banks by 200 billion yuan


An official of the city banking department of the CIRC has publicly said that the 200 billion yuan special debt will support small and medium-sized banks in 18 regions, and the provincial government is responsible for formulating specific plans. According to media reports, the 18 places include Tianjin, Hebei, Zhejiang, Shandong, Guangdong, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Shanxi, Jiangxi, Henan, Hubei, Guangxi, Sichuan, Yunnan, Shaanxi and Gansu.

The State Council has set many restrictions on small and medium-sized banks supported by the special debt funds, such as the ability of sustainable market-oriented operation of small and medium-sized banks, the improvement of governance and internal control mechanism before replenishing capital funds.

The State Council requires that local governments territorial responsibilities, the main responsibilities of banks and shareholders, and the regulatory responsibilities of financial management departments should be compacted. Under the premise of comprehensive assets and capital verification, risk investigation and strict accountability in accordance with laws and regulations, each bank and one policy can steadily promote capital replenishment.

For example, as early as September, Wenzhou bank issued a capital increase and share expansion plan report, and planned to raise no more than 7 billion yuan to supplement the banks core tier one capital and dispose of non-performing assets. In the way of subscription, the old shareholders will allocate shares in proportion, and the part that the old shareholders (including the related parties designated by the shareholders) have not fully subscribed for will be raised through the local special bond funds, and will be subscribed by the Wenzhou Municipal Peoples government. The issuance plan of special bonds shall be subject to the final approval of China Banking and Insurance Regulatory Commission.

Since then, Wenzhou bank, in reply to the inquiry of China Securities Regulatory Commission on the subscription of the above-mentioned special bonds, said that the specific subject of local special bonds designated by Wenzhou municipal government was Wenzhou state-owned financial capital management Co., Ltd. (hereinafter referred to as Wenzhou Guojin), and Wenzhou Guojin was fully funded by Wenzhou Municipal Finance Bureau. There is no difference between Wenzhou Guojin company and other shareholders in terms of subscription mode, subscription price and sales restriction arrangement, and the company has not set up special investment terms with it.

In addition to Wenzhou bank, Guangxi Beibu Gulf Bank, Inner Mongolia bank and Wuhai bank issued an announcement to apply for local government special bonds to supplement capital.

Zheng David, an expert in PPP expert base of the Ministry of finance, told the first finance and economics that issuing special bonds to supplement the capital of small and medium-sized banks and expanding financial support for SMEs through financial leverage is an important measure to achieve six stability and six guarantees. At the same time, this is also an innovative measure. Special bonds require certain income from investment. This time, investment through convertible bonds and other ways is feasible and has certain income. The State Council requires that the special debt should be reasonably supplemented with the capital of small and medium-sized banks to establish a market-oriented exit mechanism when it is due and timely, and to prevent moral risks. Professor zhengchunrong of Shanghai University of Finance and economics thinks that the financing cost of special debt is slightly over 3% at present, and the capital of small and medium-sized banks is invested with this money, and the future exit can be basically profitable. Source: first editor of financial responsibility: guochenqi_ NBJ9931

Zheng David, an expert in PPP expert database of the Ministry of finance, once told China first finance and economics that issuing special bonds to supplement the capital of small and medium-sized banks and expanding financial support for small and medium-sized enterprises through financial leverage is an important measure to achieve six stability and six guarantees. At the same time, this is also an innovative measure. Special bonds require a certain return on investment. This time, through convertible bonds and other means of investment, the exit method is more feasible and has a certain yield.

The State Council requires that the capital of small and medium-sized banks should be reasonably replenished for special bonds, a market-oriented mechanism for timely withdrawal upon maturity should be established, and moral hazard should be strictly prevented.

Professor Zheng Chunrong of Shanghai University of Finance and economics believes that the current financing cost of special bonds is slightly more than 3%. If we use this money to invest in the capital of small and medium-sized banks, we can basically make profits in the future.