SourceLivecasinoholdemFinancial federation

Reporter Peng Kefeng

Two more banks have been allowed to issue capital instruments. On the morning of May 20, the official website of the State Administration of Financial Supervision disclosed that it approved the capital instruments issuance plans of Guangzhou Agricultural Commercial Bank and Guangdong Nanhai Agricultural Commercial Bank, with a total quota of no more than 15 billion yuan. In addition, according to statistics released by the regulatory website, at least six banks have been approved to issue capital instruments at the beginning of the year, with a total amount of 112 billion yuan.

The total quota approved for the two agricultural commercial banks to issue capital instruments does not exceed 15 billion yuan.

This morning, the Guangdong Regulatory Administration of the State Administration of Financial Supervision and Administration issued a document that approved the capital instruments plan of Guangzhou Agricultural and Commercial Bank of China to issue no more than 12 billion yuan. Guangzhou Agricultural and Commercial Bank of China shall issue and manage capital instruments in strict accordance with the relevant provisions such as the measures for Capital Management of Commercial Banks.

The Guangdong Regulatory Administration also said that within the approved quota, Guangzhou Agricultural and Commercial Bank can independently determine the specific tool variety, issuance time, batch and scale, and complete the issue within 24 months after approval; if the quota application is submitted again within 24 months, the original remaining quota will become invalid, subject to the latest approval quota. The bank shall, within 10 days after the completion of the issuance of capital instruments, make a formal written report to the regulatory authority on the relevant issuance and the changes in the capital adequacy ratio.

According to another examination and approval document, the Guangdong Regulatory Administration of the State Administration of Financial Supervision and Administration approved the capital instrument issuance quota of Guangdong Nanhai Rural Commercial Bank Co., Ltd., which does not exceed 3 billion yuan. The Guangdong Regulatory Administration requires that Guangdong Nanhai Agricultural Bank should formulate and constantly improve medium-and long-term capital supplement plans suited to its own development strategy and management capabilities, strengthen capital management, strengthen capital constraints, and ensure the economical and effective use of capital.

In response, a brokerage banking analyst told the Financial Associated Press that the purpose of banks issuing capital instruments is generally to replenish capital in order to meet the requirements of regulators.

Since the beginning of the year, at least six banks have been regulated and approved by Guangfa Bank and Bohai Bank.

It is understood that the capital instruments of banks generally include preferred shares, perpetual debt (other first-tier capital instruments) and secondary capital debt (secondary capital instruments). China's commercial banks issued secondary capital instruments relatively late, the first commercial bank secondary capital bonds were issued around 2013, and most of them were state-owned large banks, but in recent years, many small and medium-sized banks have been gradually supervised and approved.

This morning, according to statistics from the Financial Associated Press, a number of banks have been approved to issue capital instruments since the beginning of the year, including Baoding Bank, Guangfa Bank, Bohai Bank, Guangzhou Bank and other banks, involving as much as 112 billion yuan. Guangfa Bank has been approved the highest quota.

Specifically, on January 2, the regulatory website disclosed that it agreed to the planned issuance quota of 2 billion yuan for the capital instruments of Baoding Bank.

On April 3rd, the regulatory website disclosed that it had agreed to the Bank of Guangzhou to issue capital instruments of no more than 4 billion yuan (including) RMB.

On April 7, the regulatory website disclosed that it agreed that Bohai Bank should issue 15 billion yuan of capital instruments, which are secondary capital bonds.

On April 9, the regulatory website Pi disclosed that it agreed that Guangfa Bank should issue 76 billion yuan of capital instruments, including secondary capital bonds and open-ended capital bonds.