Reduce costs, optimize structure - the wave of bank "tier two perpetual bonds" redemptions is coming.

The wave of redemption of Tier 2 capital bonds and perpetual capital bonds by banks is quietly rising. On September 21st, according to reporters' analysis, in recent times, several banks including Construction Bank, CITIC Bank, Ningbo Bank, and Qilu Bank have announced the full redemption of "Eternal Bonds" issued in 2020, with amounts ranging from tens of billions to hundreds of billions. Wind data shows that the total redemption size of bank "Eternal Bonds" since the beginning of the year has reached 729.28 billion yuan. The intensive redemption behind this round is the active choice of banks to optimize their capital structure, reduce financing costs, and respond to regulatory upgrades in a period of declining interest rates. Analysts point out that through the debt replacement strategy of "redeeming old debt and issuing new debt", banks can reduce interest expenses, improve net interest margin, and increase profitability.