| The 2008 financial crisis led to Basel III.On this basis,China’s banking regulatory commission promulgated the "measures for the capital management of commercial Banks" in 2012,which further improved the regulatory indicators and strengthened the supervision.The bank,as a special enterprise,its safe operation index is mainly capital adequacy ratio.The measures for the management of commercial Banks’ capital specifies in detail the index requirements of total capital,tier 1 capital and core tier 1 capital adequacy ratio,as well as strict calculation methods.In order to ensure the healthy and stable development of the banking industry,these indicators have been improved.That is,the capital adequacy ratio of commercial Banks,put forward higher requirements.However,according to the relevant statistical analysis,China’s small and medium-sized commercial Banks profitability slowdown on the capital adequacy of the adverse impact has been emerging.For example,the capital adequacy ratio and core tier 1 capital adequacy ratio of many commercial Banks,such as bank of Beijing,bank of nanjing and bank of ningbo,showed an obvious downward trend in 2010-2014.Therefore,in order to meet the regulatory requirements,China’s small and medium-sized commercial Banks urgently need to raise funds to supplement bank capital.There are many ways to replenish capital for banking financing,but each has its own advantages and disadvantages.For example,the examination and approval process of additional common stock financing is complicated,the cost is high,and there are a series of negative effects such as diluting shareholders’ equity and causing the stock price to fall.At the same time,the requirements on the profitability of the enterprises to be issued,dividends and other conditions limit the possibility of additional common shares.Under the circumstances,preferred shares,which are both equity and debt,have emerged,providing new tools for Banks to raise capital.Based on the definition,analysis and theory of preferred stock financing,this paper takes the bank of Beijing as an example and calculates the changes of financial data,capital structure,market performance and other aspects before and after the issuance of preferred stock financing according to its situation of issuing preferred stock financing in recent years.At the same time,the paper makes an in-depth study on the risks caused by the issuance of preferred stock by bank of Beijing,and puts forward the corresponding countermeasures and Suggestions,so as to provide references for other small and medium-sized listed Banks to make proper use of preferred stock financing. |
