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CN Expert Proposes RMB500B Special Treasury Bonds to Ease Banks' Profit Pressure, Stabilize Capital Replenishment Mechanism
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The Chinese government’s work report proposed issuing RMB500 billion in special treasury bonds to support capital replenishment for large SOE commercial banks. Zeng Gang, chief expert and director of the Shanghai Institution for Finance & Development, commented that this measure is not only a precise response to the current economic situation but also a critical step toward laying the foundation for long-term high-quality economic growth. Zeng further noted that issuing special treasury bonds to strengthen the capital base of SOE banks could effectively alleviate profit pressures and stabilize their capital replenishment mechanisms. Amid economic restructuring and narrowing interest margins, the NIMs of major SOE banks continued to subside, putting strain on profitability and limiting their ability to accumulate capital internally, he added. AAStocks Financial News |
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