Capital Addition and Subtraction: A Perspective on the New Logic of Differentiated Development of Small and Medium-sized Banks
On February 4th, the capital increase application of Qinghai Guinan Rural Commercial Bank was approved, raising the registered capital from 60 million yuan to 66 million yuan. Several small and medium-sized banks, such as Dongying Bank and Shijiazhuang Luquan Rural Commercial Bank, have also been approved for capital increases, while Yanggu Rural Commercial Bank and others have chosen to reduce their capital. Industry insiders point out that capital increase is the mainstream trend in bank development, and capital reduction does not indicate a weakening of capital strength, but rather a strategy to enhance capital allocation efficiency. The flexible use of both approaches helps optimize the capital structure of the banking industry and meets the requirements for differentiated development
