At the end of the year and the beginning of the year, several unlisted banks applied to issue shares to specific objects (hereinafter referred to as "fixed increase") and were accepted by the CSRC. Looking back on 2021, banks took turns to raise funds through IPO, convertible bonds, allotment, fixed growth, sustainable bonds, secondary capital bonds and other forms. The cumulative capital supplement exceeded RMB 2 trillion, and exceeded RMB 1 trillion for the third consecutive year. Analysts pointed out that under the policy guidance of actively supporting the real economy, the continuous expansion of credit supply scale and the increase of capital requirements determined by the list of systemically important banks are important reasons for banks to supplement external capital through multiple channels in 2021. Looking forward to 2022, the capital replenishment of small and medium-sized banks will continue to be promoted. Industry insiders expect that the policy level will pay more attention to the support in terms of sustainable bonds and secondary capital bonds. For small and medium-sized banks with weak market-oriented financing ability, the role of local special bonds will be further played. At the same time, small and medium-sized banks should also actively promote transformation and development, develop more capital light businesses and reduce capital consumption. Multiple "blood tonifying" channels are opened up In the past year, the bank has become more and more abundant in supplementary capital tools, with more prominent diversification characteristics. In addition to the traditional IPO, allotment, fixed increase, convertible bonds, secondary capital bonds, perpetual bonds and local special bonds, the supplementary capital has also entered the practical operation stage. In 2021, the bank's IPO set off a small climax. Four banks, Bank of Chongqing, Bank of Qilu, Ruifeng bank and Shanghai Rural Commercial Bank, were listed successively, expanding the capacity of the A-share banking sector to 41. Wind data statistics show that since 2021, listed banks have supplemented external supplementary tools of tier 1 capital (except perpetual bonds) through IPO, additional issuance, allotment and convertible bonds, raising a total of about 130 billion yuan, three times the previous year. Among them, the allotment "returned to the Jianghu" after seven years of silence, and the issuance scale of convertible bonds increased five times year-on-year. Near the end of 2021, Industrial Bank successfully listed RMB 50 billion of convertible bonds, becoming the second issuer with a scale of RMB 50 billion in the history of a shares. Tier 2 capital bonds and perpetual bonds have been issued normally. According to wind statistics, since 2021, banks have issued 135 tier 2 capital bonds, with a scale of 1.24 trillion yuan. In 2021, the annual issuance scale of perpetual bonds reached 660 billion yuan, more than 500 billion yuan for three consecutive years and more than 650 billion yuan for two consecutive years. The issuance scale continued to be large. "On the whole, there will be more diversified capital replenishment tools for banks in 2021. Although the single amount of capital replenishment of small and medium-sized banks is low, the number of small and medium-sized banks replenishing capital has increased significantly. At the same time, the capital adequacy ratio of small and medium-sized banks has rebounded. More importantly, the financing channels of small and medium-sized banks have been widened, and sustainable bonds, convertible bonds and secondary capital bonds provide capital for small and medium-sized banks to replenish capital This is a powerful help. " Zhou Maohua, macro researcher of financial market department of Everbright Bank, said. It is worth noting that after entering the fourth quarter of 2021, large state-owned banks and joint-stock banks often appear in the bond issuance list, and the amount is large. For example, ICBC, China Construction Bank, Bank of China, industrial bank, etc., the minimum issuance amount of secondary capital bonds is more than 30 billion yuan, and the highest ICBC is approved to issue no more than 190 billion yuan. For the reasons why some large and medium-sized banks issued bonds faster in the fourth quarter, the analysis shows that related to the publication of the list of systemically important banks in mid October 2021, the financial regulatory authorities require 19 systemically important banks to meet certain additional capital requirements. In addition, the Chinese version of TLAC management measures was also implemented at the end of October. According to the estimates of several institutions, before reaching the standard in 2025, the total TLAC capital gap of the four major industrial and agricultural CCCC banks identified as global systemically important banks will be about 2 trillion to 3 trillion yuan, and the annual gap of each bank will be about 100 billion yuan in the next five to eight years. Capital replenishment pressure remains in 2022 Capital adequacy is not only the bottom line of commercial banks, but also the core of banking prudential supervision by regulators. Under the background of policy support and multi-channel "blood supplement" of banks, the capital adequacy level of China's banking industry is higher than the regulatory requirements as a whole. According to the data released by the CBRC, as of the end of the third quarter of this year, the core tier 1 capital adequacy ratio of commercial banks was 10.67%, an increase of 0.17 percentage points over the end of the previous quarter; The tier 1 capital adequacy ratio was 12.12%, up 0.22 percentage points from the end of the previous quarter; The capital adequacy ratio was 14.80%, an increase of 0.32 percentage points over the end of the previous quarter. Expanding bank capital can effectively support bank credit to support the recovery of the real economy. At the policy level, the financial regulatory authorities will continue to actively promote the capital replenishment of banks, especially small and medium-sized banks. The fourth quarter regular meeting of the central bank's monetary policy committee in 2021 and the fourth quarter monetary policy report mentioned "supporting banks to replenish capital". The analysis points out that the policy level still encourages commercial banks to supplement capital, and the pressure of bank capital supplement in 2022 is still objective. Therefore, commercial banks will still have a strong motivation to supplement capital through external paths. "On the one hand, considering that the registration system will be implemented nationwide in 2022, it is expected that the share allotment tool reactivated by listed banks after many years will become an important path to supplement capital. On the other hand, considering that 19 systemically important lists have been published and the total loss absorption capacity framework has been released, it is expected that national banks will have a stronger demand for supplementary capital." Ren Tao, distinguished researcher of the national finance and development laboratory, said. Zheng Chenyang, a researcher at the Bank of China Research Institute, also pointed out that in the medium and long term, the shift of foreign monetary policy may also bring certain fluctuations to the domestic exchange rate and asset price. From the signals released by the central bank's interest rate and reserve requirement reduction and the central economic work conference, the bank will continue to increase credit investment to support the development of the real economy, coupled with stricter capital requirements of supervision, The pressure of bank capital replenishment remains unabated. The financing needs of small and medium-sized banks are more urgent Looking forward to 2022, industry analysts say that small and medium-sized banks will face greater blood pressure and demand. Ren Tao believes that under the background of the in-depth promotion of interest rate marketization and profit transfer to the real economy, the interest margin space of commercial banks has been narrowing, especially the space for small and medium-sized banks to supplement capital through profit retention. Therefore, such banks will have a strong demand for capital supplement. At the same time, compared with listed banks, non listed banks will have a greater demand for replenishing capital through secondary capital bonds and perpetual bonds due to the limited path of replenishing capital. Zhou Maohua also believes that the domestic economy will expand and the credit demand of the real economy will increase in 2022. It is expected that the total amount of credit in the whole year will be higher than that in 2021. Considering the narrow financing channels of small and medium-sized banks, fierce industry competition and high pressure on risk disposal, small and medium-sized banks have more urgent financing needs than large and medium-sized banks. In the face of subsequent capital adequacy pressure, experts expect that the policy level will also give more support to the capital supplement of small and medium-sized banks. Ren Tao said that for national banks, the policy level will pay more attention to policy support in Tier 1 capital supplement such as perpetual bonds, fixed growth and preferred shares. For small and medium-sized banks, the policy level will pay more attention to providing support in terms of sustainable debt and secondary capital debt. Especially for small and medium-sized banks with weak market-oriented financing ability, the role of local special bonds will be further played. Dong ximiao, chief researcher of Zhaolian finance, suggested that the original capital supplement tools of small and medium-sized banks could be adjusted at the policy level, and the capital supplement tools could be innovated to support the issuance of new capital instruments and secondary capital instruments. At the same time, small and medium-sized banks themselves should also change their ideas. For example, shareholders of small and medium-sized banks should fully understand how to appropriately reduce the proportion of dividends and supplement capital through profit retention. In addition, we should consolidate the foundation of development, promote transformation and development, develop more capital light businesses and reduce capital consumption. (outlook new era)