Research On City Commercial Bank's Equity Financing In NEEQ

As financial enterprises,Commercial bank's management is related to credit and currency.The Commercial banks absorb public deposits.At the same time,they meet the enterprise's financing demand by bank loans.Due to this special characteristic,commercial banks must have enough capital as a guarantee to ward off the risk of loans recovery,to meet the needs of depositors at any time.So,it is a problem to be studied in the future how commercial banks financing the necessary capital,especially the city commercial banks.As the third echelon in China's banking industry,there is a big gap in the corporate governance,internal control,risk management and profitability between city commercial banks and the other large banks so that it is very difficult to be listed for the city commercial Banks.Based on this background,the rapid development of NEEQ(National Equities Exchange and Quotations)provides a new financing channel for the city commercial banks.Based on the example of QILU Bank,this paper studies the effect of city commercial banks being listed on the NEEQ.Firstly,this paper explains the feasibility of city commercial Banks being listed on the NEEQ in theory and the mutual adaptability between the NEEQ and city commercial Banks.QILU Bank is the first city commercial Bank listed on the NEEQ.Then,this paper analyzes the motivation and the effect of QILU Bank being listed on the NEEQ in the form of case study based on corporate governance,capital adequacy,profitability and so on.Case study shows that being listed on the NEEQ have helped QILU Bank improved its capital adequacy ratio,strengthened the capital base,and enhanced the brand value and profitability.At the same time,it helped improving the corporate governance structure.As the first city commercial Bank listed on the NEEQ,QILU Bank has made a good example for the other city commercial banks and has built a new channel of capital supplement.The NEEQ is still in the early stage of development.At last,this paper puts forward some suggestions for improving the financing effect both from the angle of city commercial Banks and the market regulators.