Exclusive! Debt enthusiasm rises again, commercial banks' bill trading volume reaches a new high this year
Small and medium-sized banks have shown renewed enthusiasm for debt investment, with trading volumes reaching a new high this year.
According to data from the banking industry's same-day lending center, in July, commercial banks' bill trading volume broke through 17 trillion yuan, exceeding the previous record set in the first quarter of the year, and continuing to rise above that of large banks and share-holding banks.
Behind this surge is a combination of factors, including inadequate loan demand, credit contraction, pressure from big banks, and restrictions on cross-regional expansion, which have driven small and medium-sized banks to become more aggressive in their financial investments, especially debt investments, to expand their assets and profits.
Among the commercial banks, Renmin Bank has seen its investment returns rise by 1227 billion yuan year-on-year as of the end of the first quarter, with a proportion of 45.51% exceeding that of credit assets (43.03%).
Other small and medium-sized banks have also seen significant increases in their investment returns, with some reporting year-on-year growth rates of over 100%.
As for the sustainability of this debt enthusiasm, market analysts have different views. Some believe that as the yield curve flattens and interest rate risks increase, banks may need to be more cautious in their debt investments and focus on risk management. Others argue that as long as interest rates remain low and bond prices remain high, banks can still achieve good returns from selling off old bonds and implementing risk-reward strategies.
The People's Bank of China has also expressed concerns about the potential risks associated with excessive debt investments by small and medium-sized banks. In a recent statement, the central bank emphasized the need for banks to maintain a reasonable "degree" in their debt investments and balance investment returns against risk-taking.