Photo: iStock
Photo: iStock

The Financial Stability and Development Committee is planning to kick off the launch of the perpetual bond as soon as possible, with the aim of helping commercial banks replenish their capital, reported.

A perpetual bond is a bond with no maturity date, and issuing a perpetual is the main way for commercial banks to supplement their Tier 1 capital internationally. However, according to the report, there is no precedent in China.

Ma Jun, a member of the central bank’s monetary policy committee, thinks replenishing banks’ capital as soon as possible will help them to play a better role in boosting lending, supporting the real economy and easing the financing difficulties of private and small enterprises.

Meanwhile, banks will have a better stance in resisting risks and expanding credits, which will help boost market confidence in banking stocks.

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