Research On The Financing Of Preferred Stock In Commercial Banks

The issuance of preferred stock financing combines the characteristics of traditional equity financing and debt financing and provides a new financing means for financiers.Preferred stock has enriched the research scope of securities diversification financing and provided theoretical reference for financial supervision.Before 2013,China did not fully and systematically clarify the preferred stock system through laws and regulations.With China’s regulators on the establishment of the system of preferred stock and let go of,more and more scholars have carried out research on preferred stock system and obtained abundant theoretical results,it will fill the blank in the field of preferred stock theory research in China,and provide theoretical reference for the future of financial regulation.The Basel III Accord and commercial bank capital management measure(trial)on the commercial bank capital adequacy ratio put forward the more strict regulatory requirements,therefore,commercial Banks need to be further financing to raise capital,and the traditional examination and approval to raise equity financing difficulty increasing,issuing bonds financing is not belong to the category of tier 1 capital supplement tools.In this context,comply with international financial supervision and regulation in China,actively studying abroad preferred shares mature case,open the domestic system of preferred stock,for the commercial bank provides a new means of financing,for commercial Banks to improve the level of capital,to meet regulatory requirements,improve the ownership structure is of great importance.Research idea of this paper are as follows: first,combed the domestic and foreign scholars for the research results of the system of preferred stock Second,the analysis in the commercial bank capital management approach(trial),the motive of commercial Banks to issue preferred stock financing,comparing to issue preferred stock financing and other financing methods of the similarities and differences;Then,the paper analyzes the case of the construction bank issuing preferred stock financing,and analyzes the terms and effect of the background incentive plan of the construction bank issuing preferred stock financing.Then,come to the conclusion: the issuance of preferred stock financing of commercial Banks has the positive significance,but it is not suitable for all commercial Banks in the end,according to China’s commercial Banks to issue preferred stock financing problem from the issuer investors and regulators three aspects are proposed.Before writing,this article refer to the relevant research results of scholars both at home and abroad,has laid a theoretical basis for this article in addition,also collected the domestic relevant policy documents,the China banking regulatory commission annual commercial bank annual report data related to national economic growth,through the analysis,provide the data for this paper’s support.Before 2013,China did not fully and systematically adopt the form of laws and regulations to make clear the preferred stock system,and there were very few enterprises that successfully raised the financing of preferred stock.So domestic academia research mainly concentrated in the theory of preferred shares,by studying the foreign related theory,case,regulators and financiers of domestic advice,however,the actual case study analysis of the domestic especially for commercial Banks is little research on preferred stock financing problem.The preferred stock system,which has been piloted since 2013,has been around for about five years,and its impact on all aspects has been revealed.In this paper,the construction bank of China issued preferred shares as an example,the study analyses the whole process of commercial Banks to issue preferred stock financing,and give some suggestions on the application of preferred stock financing in China’s commercial Banks..Due to the theoretical knowledge and survey instruments co.,LTD.,there are still some deficiencies,this paper mainly includes:(1)theoretical depth is not enough,for commercial Banks to issue preferred stock financing problem research and analysis is still in its infancy,failed to have the significant theory innovation;(2)the case of construction bank listed in this paper is not sufficiently comprehensive due to its limited means of investigation.Construction bank within the territory of preferred shares are issued according to this thesis writing time,the effect to the instant,so this paper abandoned the in-depth study of preferred shares in China construction bank,just do a simple introduction,this is the direction of the future can continue to further study.