“Boosting Capital” Accelerates! Small Banks Intensively Raise Capital, with Over 10 Trillion Yuan in Bank-Backed Debts Issued This Year

Capital is the "backbone" for banks to expand their business scope and resist operational risks. As businesses grow, small banks have increasingly felt the need to supplement their capital, leading them to launch intensive efforts to ease capital replenishment pressure.

Our reporter noticed that many small banks have recently intensified their efforts to raise capital. For example, Jiangxi Suizhou Bank released a report on its targeted issuance, with total funds raised of 38.67 billion yuan, used to supplement its core tier-1 capital. Additionally, Hebei Hengshui Bank was approved to issue shares of 6 billion stocks.

"Small banks have recently intensified their efforts to raise capital and expand their shares, mainly driven by the need to replenish capital and enhance risk-resisting capabilities," said Wang Pengbo, a senior analyst at Hexun.com, on the financial industry.

Small Banks Intensively Raise Capital