Commercial banks issued 256.6 billion yuan of "Eryong bonds" this year, down 13% from the same period last year.

FAP, 18 Apr (FAP)-- as of April 17 this year, 20 commercial banks have issued 256.6 billion yuan of "Eryong bonds" (the combined term for secondary capital bonds and perpetual bonds) in the interbank bond market, of which 247.2 billion yuan is secondary capital debt, accounting for 96 percent of the total. However, the issuance of "Eryong bonds" by commercial banks fell 13 per cent during the year compared with the same period last year. Since the beginning of this year, under the influence of the downward growth rate of net profit of the banking industry and other factors, the ability of endogenous capital replenishment of commercial banks has been weakened, and the demand for exogenous capital replenishment is relatively strong. Why does the scale of "replenishing blood" not increase but decline this year? In this regard, Mingming, chief economist of Citic Securities, said that at the beginning of this year, the bond market was still affected by the aftermath of the redemption wave at the end of 2022, the cost of issuing bonds was slightly higher and it was difficult to issue bonds. Some commercial banks delayed the issuance of "second permanent bonds", resulting in a slow pace of issuance in the first quarter. (Securities Daily)