China’s six biggest banks are expected to gain greater lending capacity and stronger capital buffers following a fresh government cash injection.
According to S&P Global Ratings, Industrial and Commercial Bank of China and Agricultural Bank of China are likely to receive capital support in 2026, while the other four major lenders were recapitalized in 2025.
The ratings agency noted that the move will also help meet higher capital requirements tied to the banks’ designation as global systemically important banks (G-SIBs).
The six lenders have faced greater pressure on net interest margins compared to peers, largely due to their role in policy-driven lending and supporting China’s economic growth.
S&P analyst Xi Cheng said the capital injection would strengthen buffers amid profitability challenges and help offset weaker internal capital generation.
Cheng added that the banks’ policy responsibilities contributed to sharper margin compression and a larger decline in returns on average assets between 2023 and 2025 compared with other Chinese banks.
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