At the beginning of the year, "blood replenishment" is busy, and the trend of capital increase and share expansion among small and medium-sized banks has resumed

According to incomplete statistics from reporters, since the beginning of this year, dozens of city commercial banks and rural commercial banks, including Hubei Bank, Guangzhou Bank, and Jiujiang Bank, have disclosed or completed new rounds of capital increase plans, with financing scales ranging from hundreds of millions to billions of yuan, all aimed at supplementing core Tier 1 capital to enhance risk resistance capabilities. After capital supplementation, how can small and medium-sized banks transform external "blood transfusions" into endogenous "blood production" capabilities, avoiding the cycle of "supplementing blood - consumption - re-supplementing blood"? Industry experts suggest that the new capital should be precisely directed towards areas such as inclusive finance, green credit, and technology-based enterprises, while also establishing a sound long-term capital supplementation mechanism to enhance the ability to accumulate retained earnings through optimizing asset-liability structures and expanding intermediary businesses. (Shanghai Securities Journal)