Human capital, as a key production factor driving innovation-driven development, serves not only as a core pillar for achieving the Chinese path to modernization, but also as a critical lever for implementing the concept of “investing in people” outlined in the Fourth Plenary Session of the 20th CPC Central Committee. Based on administrative penalty information released by the National Financial Regulatory Administration, this paper systematically compiles all penalty records imposed on banking institutions from 2012 to 2023, matches the data on NEEQ-listed companies with the bank regulatory penalty data of cities where the companies are located, and constructs a city-level panel dataset of bank regulatory penalties. Using this dataset, this paper further examines the impact of bank regulatory penalties on the upgrading of corporate human capital structure, as well as the underlying mechanisms. The study finds that bank regulatory penalties significantly promote the upgrading of human capital structure. In China’s bank-dominated financial system, banks serve as the primary channel for firms to obtain external financing. On the one hand, regulatory penalties effectively correct bank lending behaviors by standardizing credit order, improving financing environments, and reducing financing costs, thereby enhancing firms’ access to credit. Adequate financial support, in turn, provides a direct guarantee for the upgrading of human capital structure. On the other hand, regulatory penalties also optimize the allocation of funds by guiding firms to increase investment in fixed assets and R&D innovation, which indirectly promotes the upgrading of human capital structure. Heterogeneity analysis shows that the above effects are more pronounced in non-SOEs, SMEs, high-tech firms, firms with lower information transparency, and regions with lower levels of financial development. In terms of penalty types, lighter penalties and penalties related to bank lending behaviors exhibit stronger effects in promoting the upgrading of human capital structure. Economic consequence analysis further indicates that the upgrading of human capital structure induced by bank regulatory penalties contributes to higher TFP and greater innovation output. This paper not only enriches the literature on bank regulatory penalties and corporate human capital investment, but also provides empirical evidence for enhancing the effectiveness of financial services to the real economy and promoting high-quality economic development.